12th august,2015 daily exclusive oryza rice e newsletter by riceplus magazine

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August 12, 2015

Vol 5.Issue XIII

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Global Rice Quotes August 12th, 2015 Long grain white rice - high quality Thailand 100% B grade 375-385 Vietnam 5% broken 340-350 India 5% broken 380-390 Pakistan 5% broken 340-350 Myanmar 5% broken 405-415 Cambodia 5% broken 425-435 U.S. 4% broken 470-480 Uruguay 5% broken 535-545 Argentina 5% broken 530-540

↔ ↔ ↓ ↔ ↔ ↔ ↔ ↔ ↔

Long grain white rice - low quality Thailand 25% broken 350-360 Vietnam 25% broken 325-335 Pakistan 25% broken 310-320 Cambodia 25% broken 410-420 India 25% broken 345-355 U.S. 15% broken 445-455

↔ ↔ ↔ ↔ ↔ ↔

Long grain parboiled rice Thailand parboiled 100% stxd 375-385 ↔ Pakistan parboiled 5% broken stxd 415-425 India parboiled 5% broken stxd 370-380 ↓ U.S. parboiled 4% broken 555-565 ↔ Brazil parboiled 5% broken 545-555 ↔ Uruguay parboiled 5% broken NQ ↔ Long grain fragrant rice Thailand Hommali 92% 855-865 ↔ Vietnam Jasmine 485-495 ↔ India basmati 2% broken NQ ↔ Pakistan basmati 2% broken NQ ↔ Cambodia Phka Mails 835-845 ↔ Brokens Thailand A1 Super 320-320 ↔ Vietnam 100% broken 310-320 ↔ Pakistan 100% broken stxd 280-290 ↔ Cambodia A1 Super 350-360 ↔ India 100% broken stxd 305-315 ↔ Egypt medium grain brokens NQ ↔ U.S. pet food 325-335 ↔ Brazil half grain NQ ↔

↔

All prices USD per ton, FOB vessel, oryza.com

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Floods Destroy Over 200,000 Hectares of Paddy Fields in Myanmar, Says MRF Official Aug 11, 2015

Heavy rains floods in the northern Myanmar have destroyed more than 200,000 hectares of paddy fields, local sources quoted the Chairman of the Myanmar Rice Federation (MRF).He told reporters that more than 208,000 hectares if paddy fields have been flooded especially in Kale, Kanbalu and Monywa in Sagaing division. Already the MRF had taken measures to avoid rice shortages. It has decided to stop rice exports until September 15 as well as open wholesale shops in flood-affected regions to curb price hikes.

Since annual rice harvest season runs between June-July until September-October, the Ministry of Agriculture and Irrigation and related agencies told local sources that farmers can still replant before the end of the harvest season. They have in fact started distributing paddy seeds for farmers who are keen on replanting their crops. However, plants cannot be replanted in lands that are extensively damaged.The Ministry sources noted that more than 112,000 hectares of paddy fields can be replanted. Farmers in some flood-affected regions noted that replanting cannot be done unless the irrigation department helps them to rebuild small spillways that were destroyed by floods.

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The MRF also hinted at importing rice in case of worst weather conditions. The Chairman added that imports would be last resort. He noted that Thai rice exports are reasonable at $350-$370 per ton.Myanmar is a net exporter of rice and its exports have been increasing consistently for the past few years. Myanmar exported around 1.8 million tons of rice in 2014. The MRF expects a paddy output of around 14 million tons (around 8.96 million tons, basis milled) in 2015. The government has been targeting to export around 2 million tons of rice this year after exporting about 1.8 million tons of rice in FY 2014-15.USDA estimates Myanmar to produce 20 million tons of paddy rice (around 12.8 million tons, milled basis) and export around 2.2 million tons of rice in MY 2015-16 (January - December 2015).

Oryza Afternoon Recap - Chicago Rough Rice Futures Pulled Lower by Falling Grains as Markets React to Chinese Currency Devaluation and Traders Prep for Tomorrow's USDA S&D Update Aug 11, 2015

Chicago rough rice futures for Sep delivery settled 7 cent per cwt (about $2 per ton) lower at $11.790 per cwt (about $260 per ton). The other fell sharply today as the markets reacted to outside forces; Soybeans closed about 2.3% lower at $9.7125 per bushel; wheat finished about 3.5% lower at $5.0725 per bushel, and corn finished the day about 3.4% lower at $3.8750 per bushel.

U.S. stocks declined more than 1% on Tuesday after an unexpected move overnight by the People's Bank of China to depreciate the yuan by nearly 2%. The Dow Jones industrial average traded about 220 points lower after earlier falling more than 250 points to wipe out Monday's gains. On Monday, the blue chip index snapped its first seven-day losing streak in four years with a 241-point rise. Resulting sharp declines in oil pressured the energy sector to give back much of Monday's gains, dropping nearly 2% as one of the greatest decliners in the S&P 500.

The drop in the daily peg to 6.2298 renminbi against the U.S. dollar, down from 6.1162 on Monday, was the largest one-day move in more than two decades and took the currency back to levels from three years ago. The central bank described the decision as a "one-off depreciation."

European stocks closed sharply lower, with the German DAX off more than 2.5%, on the yuan move. Asian stocks ended mostly lower, with the Shanghai Composite flat. On the data front, preliminary second quarter productivity was up at an annual rate of 1.3%, while unit labor costs were up 0.5%. Wholesale sales rose 0.1% in June, the weakest since March of this year, while inventories topped expectations with a gain of 0.9%.

May's figure was revised lower to 0.6% from 0.8%.The Dow Jones Industrial Average traded down 233 points, or 1.33%, at 17,381. The S&P 500 traded down 24 points, or 1.16%, at 2,079, with materials falling more than 2 percent to lead nine sectors lower and telecommunications the only gainer. The Nasdaq traded down 68 points, or 1.33%, at 5,033. Gold is trading about 0.4%

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higher, crude oil is seen trading about 4.4% lower, and the U.S. dollar is seen trading about 0.1% higher about 1:00pm Chicago time.

Monday, there were 1,554 contracts traded, up from 468 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 213 contracts to 10,193.

EU to Import 80,000 Tons of Rice from Vietnam at Zero Per cent Duty under a Bilateral FTA Aug 11, 2015

The European Union (EU) and the Vietnam have signed a bilateral free trade agreement (FTA) after two-and-half years of intense talks, according to local sources.Under the agreement, the EU can import 80,000 tons annually from Vietnam at zero present duty.Official declaration by EU confirms that "All issues of substance have been agreed on, and both sides have reached a mutually beneficial and balanced package,” an official declaration from the EU was quoted.

However, the Italian rice sector, which has been against the increasing volume of rice exports from the Asian Least Developed Countries (LDCs), is not very happy with the development.

"Once again the EU uses rice as a bargaining chip in a trade agreement with countries of Southeast Asia”, the Head of National Federation of rice of Confagricoltura (one of the most important Italian Farmers' union) was quoted.“In this way in EU in 2016 we will arrive at about 500,000 tons of free duty import from Asia, at prices so low as to endanger the sale of European rice on our same market," he adds.

India Rice Sellers Lower Some of Their Quotes Today; Other Asia Rice Quotes Unchanged Today Aug 11, 2015

India rice sellers lowered their quotes for 25% broken rice by about $5 per ton to around $345$355 per ton today. Other Asia rice sellers kept their quotes mostly unchanged today.

5% Broken Rice Thailand 5% rice is indicated at around $365 - $375 per ton, about $25 per ton premium on Vietnam 5% rice shown at around $340 - $350 per ton. India 5% rice is indicated at around $385 - $395 per ton, about $45 per ton premium on Pakistan 5% rice shown at around $340 - $350 per ton.

25% Broken Rice Thailand 25% rice is shown at around $350 - $360 per ton, about $25 per ton premium on Vietnam 25% rice shown at around $325- $335 per ton. India 25% rice is indicated at around

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$345 - $355 per ton, down about $5 per ton from yesterday and about $35 per ton premium on Pakistan 25% rice shown at around $310 - $320 per ton.

Parboiled Rice Thailand parboiled rice is indicated at around $380 - $390 per ton. India parboiled rice is indicated at around $375- $385 per ton, about $40 per ton discount to Pakistan parboiled rice that was last shown at around $415 - $425 per ton.

100% Broken Rice Thailand broken rice, A1 Super, is indicated at around $320 - $330 per ton, about $10 per ton premium on Vietnam 100% broken rice shown at around $310 - $320 per ton. India's 100% broken rice is shown at around $305 - $315 per ton, about $25 per ton premium on Pakistan broken sortexed rice shown at around $280 - $290 per ton.

Production Capacity Underutilized in Mozambique, Says Agriculture Official Aug 11, 2015

Mozambique has around 900,000 hectares of land for potential rice production but only 310,000 is being used currently, local sources quoted the National Director of Agriculture and Forestry.

This underutilization of production capacity in the country is leading to rice deficit and forcing the government to import rice,He noted that factors such as limited access to quality production

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processes, absence of modern farm equipment and less financing options are hindering rice production in the country.

The official stated that in 2014, Mozambique produced less than 40% of the rice, about 223,000 tons, needed for annual consumption of around 580,000 tons and imported the rest 360,000 tons.

He added that use or traditional technologies, poor water management, weak soil levelling and adverse weather conditions impacted Mozambique's production last year.

He noted that about 90% of rice production is carried out by small scale farmers. They produce an yield of around 1.0 to 1.2 tons per hectare in rain fed systems and around 2.8 to 3.5 tons per hectare in irrigated conditions.USDA estimates Mozambique to produce around 351,000 tons of paddy rice (around 228,000 tons, basis milled) and import around 500,000 tons in MY 2015-16 (May - April).

Oryza Overnight Recap – Chicago Rough Rice Futures Continue to Show Strength Despite Sharply Lower Grains as Markets React to Unchanged Crop Conditions and Chinese Currency Devaluation Aug 11, 2015

Chicago rough rice futures for Sep delivery are currently seen trading 7 cent per cwt (about $2 per ton) higher at $11.930 per cwt (about $263 per ton) during early floor trading in Chicago.

The other grains are seen trading lower this morning; soybeans are currently seen trading about 1.3% lower, wheat is listed about 3% lower and corn is currently noted about 2.9% lower.

U.S. stocks traded lower on Tuesday after an unexpected move overnight by the People's Bank of China to depreciate the yuan by nearly 2%. The Dow Jones industrial average quickly fell 180 points soon after the open. The index snapped a seven-day losing streak on Monday with a 241point gain. Resulting sharp declines in oil pressured the energy sector to give back much of Monday's gains, dropping 2% as the greatest decliner in the S&P 500.

The drop in the daily peg to 6.2298 renminbi against the U.S. dollar, down from 6.1162 on Monday, was the largest one-day move in more than two decades and took the currency back to levels from three years ago. The central bank described the decision as a "one-off depreciation."

European stocks traded sharply lower, with the German DAX off more than 2%, on the yuan move. Asian stocks closed mostly lower, with the Shanghai Composite flat. On the data front, preliminary second quarter productivity was up at an annual rate of 1.3%, while unit labor costs were up 0.5%.

The Dow Jones Industrial Average traded down 173 points, or 0.98%, at 17,442. The S&P 500 traded down 16 points, or 0.78%, at 2,087, with energy plunging 2% to lead eight sectors lower

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and utilities and telecommunications the only gainers. The Nasdaq traded down 36 points, or 0.70%, at 5,066. Gold is currently trading about 0.5% lower, crude oil is seen trading about 0.8% lower, and the U.S. dollar is currently trading about 0.5% higher at 8:15am Chicago time.

Top Asian Rice Producers Form 'International Organization of Rice Bran Oil' Aug 11, 2015

Top Asian rice producers, including India, China, Thailand, Japan and Vietnam, have jointly formed the 'International Association of Rice Bran Oil (IARBO)' to promote the use of rice bran oil and facilitate its global trade, according to Financial Express.The IARBO will be headquartered in Bangkok, the President of the Association was quoted. The Association aims to encourage technological innovations in the field of processing rice bran oil as well as standardize specifications of the oil in order to promote international trade.

The President also noted that rice bran oil has not gained much popularity among Indian consumers despite being cheap and being considered healthier. He also cited a recent study, which showed that rice bran oil is much more suitable for Indian cooking.The IARBO President

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noted that Pakistan and other rice producing nations in Asia are also likely to join the Association shortly.

He stated that globally, there is a potential to produce about 3.5 million tons, but currently only 1.5 million tons is being produced. India (950,000 tons), China (200,000 tons), Japan (80,000 tons) and Thailand (50,000 tons) are the major producers of rice bran oil.The Indian government's recent step to allow bulk exports of rice bran oil is viewed as a major development to tap global edible oil market by Indian rice bran oil exporters.

Vietnam Cuts Floor Price of Lower Quality Rice Exports Aug 11, 2015

Vietnam has lowered the floor price (minimum export price, MEP) of its lower quality (25% broken) rice exports by about 3% to around $340 per ton from around $350 per ton in order to boost exports, according to Reuters.The new MEP will reportedly be effective from August 13, 2015.

Vietnam exported about 3.301 million tons of rice in first seven months of calendar year 2015, down about 9% from about 3.631 million tons of rice exported during same time last year, according to data from the VFA. Average rice export price so far in this year stands at about $414 per ton (FOB), down about 4% per ton from about $431 per ton recorded during same last year.

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