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

February 12, 2015

Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com

Volume 5, Issue I Daily Exclusive

ORYZA Rice Newsletter

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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com

Guyana Releases Two New Hybrid Rice Varieties Feb 11, 2015

Guyana's Ministry of Agriculture and the Guyana Rice Development Board (GRDB) have released two new hybrid rice varieties - GRDB 14 and Maria's Delight aromatic rice - on February 11, 2015 at the Guyana International Conference Center.Both the varieties are developed at the Burma Rice Research Station (BRRS) situated in Essequibo. While GRDB 14 is a high-yielding variety and is resistant to lodging, Maria's Delight is the country's first aromatic rice variety and is resistant to pests and disease attacks, according to the Chief Scientist and Plant Breeder at the GRDB. They are developed by cross-breeding local rice varieties and are aimed at boosting productivity of the country. Particularly the aromatic rice variety is capable of yielding 45 bags per acre (around 113 bags per hectare) and has excellent milling and cooking qualities apart from having a uniform expression of aroma, he said.

He told local sources that Guyana has been striving to develop more pest resistant rice varieties and will continue to put more efforts in that direction. He added that BRRS and GRDB, through development and marketing of newer rice varieties, would play a major role in Guyana's efforts to find new export markets.Guyana's President, who launched the two new varieties, noted that Guyana is currently a very small player in the international rice market and have to achieve a lot more to prove their visibility in the market. He stressed that the future of local rice industry would depend on their efficiency in developing more aromatic rice varieties and increasing production. He assured that the government would provide requisite support for the continued growth, development and prosperity of the rice industry.Guyana has exported around 501,208 tons of rice in 2014, up about 27% from around 394,000 tons exported in 2013, according to the Agriculture Minister

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California Rice Sector to Hit by Port Closures Feb 11, 2015

Problems of dock workers and terminal operators in the U.S. West Coast ports are having a ripple effect in the economy.

Especially agriculture exports, including those of rice, are being affected significantly.Nearly 80% of the rice grown in California is medium-grain rice and is exported through the port of West Sacramento and Oakland port to the countries in the south Pacific. But strikes and closures by the dock workers and terminal operators due to some issues over contract terms have been delaying the shipment of rice to destination countries causing severe losses to the exporters.

Some exporters told local sources that many of their rice containers are having to wait at the docks idly. For every one day their rice containers wait at docks, they need to pay extra fees, they added. They expressed concerns that though authorities tried to settle the ongoing labor disputes shortly, it is not certain when the operations would return to normal. Similar port lockouts due to labor disputes occurred in 2002. They came to an end with the involvement of the then U.S. President.

California rice sector had been impacted by drought last year. The state's paddy rice acreage in 2014 had declined to around 420,000 hectares, down about 25% from around 525,000 hectares planted in 2013 due to prolonged dry conditions and water shortages. California is the second largest rice producing state in the U.S. after Arkansas, and contributes to around 2 million tons of paddy rice annually or about 25% of the total rice grown in the U.S. The state's rice sector employs about 25,000 people and most of rice grown here is exported.Currently, export prices of the U.S. medium grain rice stand at around $905 per ton, down about 1% from around $915 per ton in the beginning of this year.

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Brazil Exports 69,913 Tons of Rice in January 2015 Feb 11, 2015

Brazil has exported around 69,913 tons of rice in the first month of 2015, according to data released by the Rice Institute of Rio Grande do Sul (IRGA). Cuba remained the largest importer of Brazilian rice in January 2015 with around 36,967 tons, or about 53% of Brazil's total rice exports during the month.

Switzerland accounted for around 16,471 tons (about 24% of Brazil's total exports during the month); Bolivia accounted for around 7,927 tons (about 11% of Brazil's total exports during the month); Trinidad Tobago accounted for 1,836 tons (about 3% of Brazil's total exports during the month); and the U.S. and Chile accounted for 2% and 1% of Brazil’s total rice exports during January 2015 with 1,491 tons and 1,001 tons respectively.

Angola, Panama, Belgium, Saudi Arabia, Cape Verde, Namibia, Barbados, Uruguay, Antigua and Barbuda, Guinea, Netherlands Antilles, Lithuania. Bahamas, Portugal and Paraguay accounted for the remaining 6% or around 4,220 tons of Brazil's total rice exports in January 2015.Brazil exported around 1.24 million tons of rice in 2014, up about 2.4% from around 1.209 million tons exported in 2013, according to data from IRGA.

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Iran May Lift Ban on Rice Imports in March 2015, Say India Commerce Ministry Officials Feb 11, 2015

Iran, which imposed a temporary ban on rice imports in November 2014 citing excess stocks as reason, is likely to lift the ban in March this year, local sources quoted the officials from Indian Commerce Ministry as saying.As Iran is an important destination for India's basmati rice exports accounting to over 30% of India's total basmati rice exports, Indian exporters as well as the government have been trying to negotiate with Iran over resuming the basmati rice imports.

A team of Ministry officials who visited Iran recently told local sources that Iranian authorities have assured them that the ban on rice imports would be lifted shortly as the supply glut in their domestic market has eased substantially. “Iranian officials have indicated that they will resume the process of re-registration of Basmati suppliers. The country is supposed to come up with its notification (on lifting curbs) on March 21," a Commerce Ministry official was quoted as saying.However, Ministry sources noted that the volume of basmati imports to Iran may not be as high as before as the Middle East nation is still carrying a good amount of stocks. The Ministry is expecting that Iran would import around 800,000 to one million tons in 2014-15. India exported around 1.44 million tons to Iran in FY 2013-14 (April - March), up about 33% from around 1.08 million tons exported in FY 2012-13, according to data from Agricultural and Processed Food Products Export Development Authority (APEDA).

India exported around 3.76 million tons of basmati rice in FY 2013-14, up about 9% from around 3.46 million tons exported in FY 2012-13. India exported a total of 10.78 million tons of rice (including basmati and non-basmati) in FY 2013-14, up about 6% from about 10.15 million tons exported last year.

Thailand, Pakistan Rice Sellers Lower Their Quotes Today; Other Asia Rice Quotes Unchanged 5

Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Feb 11, 2015

Thailand rice sellers lowered their quotes for Hommali rice by about $5 per ton to around $920 $930 per ton today. Pakistan rice sellers lowered most their quotes by about $5 - $15 per ton.

Vietnam and India rice sellers kept their quotes mostly unchanged.

5% Broken Rice Thailand 5% rice is quoted at around $405 - $415 per ton, about $55 per ton premium on Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is quoted at around $395 $405 per ton, about $50 per ton premium on Pakistan 5% rice quoted at around $345 - $355 per ton.

25% Broken Rice Thailand 25% rice is quoted at around $365 - $375 per ton, about $40 per ton premium on Vietnam 25% rice shown at around $325- $335 per ton. India 25% rice is quoted at around $360 - $370, about $55 per ton premium on Pakistan 25% rice quoted at around $305 - $315 per ton, down about $5 per ton from yesterday.

Parboiled Rice Thailand parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice is quoted at around $390 - $400 per ton, about $5 per ton premium on Pakistan parboiled rice quoted at around $385 - $395 per ton, down about $10 per ton from yesterday.

100% Broken Rice Thailand broken rice, A1 Super, is quoted at around $320 - $330 per ton, about $15 per ton premium on Vietnam 100% broken rice shown at around $305 - $315 per ton.

India's 100% broken rice is shown at around $295 - $305 per ton, about $20 per ton premium on Pakistan broken sortexed rice quoted at around $275 - $285 per ton, down about $15 per ton from yesterday.

Oryza Overnight Recap – Chicago Rough Rice Futures Look to Recover Following two 6

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Sessions of Steep Losses and as Traders Digest Yesterday’s S&D Update Feb 11, 2015

Chicago rough rice futures for Mar delivery are currently listed 7.5 cents per cwt (about $2 per ton) higher at $10.310 per cwt (about $227 per ton) during early floor trading in Chicago. The other grains are seen trading mostly higher: soybeans are currently seen about 0.5% higher, wheat is listed about 0.3% higher and corn is currently noted about 0.2% lower.U.S. stock traded mixed on Wednesday as investors focused on developments in Greece's negotiations with the euro zone finance ministers.

Blue chips and the S&P 500 traded moderately lower. All eyes will be on the outcome of the Eurogroup meeting that begins at 11:30 a.m. ET. Greek Finance Minister Yanis Varoufakis is expected to ask for a "bridge program" to cover the government's funding needs while a new debt pact is agreed. European equities traded lower ahead of the Eurogroup meeting of finance ministers. Little economic data is expected aside from the release of the monthly Federal Budget statement at 2:00 p.m. ET. With slightly higher interest rates, weekly mortgage applications were down 9% on a seasonally adjusted basis, the Mortgage Bankers Association said. The Dow Jones Industrial Average traded down 63 points, or 0.36%, at 17,807. The S&P 500 traded down 3 points, or 0.14%, at 2,065, with utilities the greatest of seven laggards and consumer staples leading advancers. The Nasdaq gained 6 points, or 0.13%, at 4,793. Gold is currently trading about 0.7% lower, crude oil is seen trading about 2.6% lower, and the U.S. dollar is currently trading about 0.3% higher at 8:30am Chicago time.

Uganda to Receive Korean Support to Boost Upland Rice Production Feb 11, 2015

The Korean Rural Community Corporation (KRCC) will guide the Ugandan government to increase rice production in upland rice areas as well as effectively make use of the modern farming technologies, according to local sources. The President of the KRCC who visited Uganda met with a team of officials from the Agriculture Ministry led by the Agriculture Minister and decided on the plan of action.

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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Uganda's Agriculture Minister noted that the two sides identified certain upland regions such as Pallisa, Kibuku and R.Mpologoma where rice production could be enhanced. He also noted that the two sides have agreed on new areas of cooperation, including the introduction of information communication and technology (ICT) tools in rice production. The Agriculture Minister also stated that Korea has agreed to support Uganda in coordinating roundtable meetings in East Africa, which are aimed at framing strategies for rural development.

Uganda produces only 65% of the rice needed for its annual consumption and imports the rest.

Like other African countries, Uganda is also aiming to increase local rice production and reduce imports. USDA estimates Uganda to produce around 150,000 tons of milled rice and import around 120,000 tons in MY 2014-15 (May - April) to meet a consumption demand of around 230,000 tons.

ABARES Forecasts Australia 2014-15 Paddy Rice Production at 684,000 Tons, Down 18% from Last Year Feb 11, 2015

Australia's paddy rice production in MY 2014-15 (April 2014 - March 2015) is estimated to decline to around 684,000 tons (around 492,000, basis milled), down about 18% from an estimated 833,000 million tons (around 600,000 tons, basis milled) in MY 2013-14, according to data from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).In its February crop outlook report, the ABARES attributes the decline in paddy rice production to a decline in planting area during the marketing year reflecting reduced 8

Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com supplies of irrigation water in the main rice producing region of New South Wales. It also expects the yields to return to normal from the above average yields last year.

2014-15 paddy rice planting area is expected to decline about 6.5% to around to 71,000 hectares from an estimated 76,000 hectares in the previous year. It estimates the country's paddy rice yield to decline about 12% to around 9.63 tons per hectare from around 10.96 tons per hectare last year.About 99% of paddy rice is produced in New South Wales. In its February crop outlook report, the ABARES estimated the paddy rice production in the region at around 680,000 tons (around 490,000 tons, basis milled) from around 70,000 hectares of planted area. The region is expected to produce a yield of about 9.71 tons per hectare during the marketing year.

Australia mostly grows short/medium rice varieties that are suited to its dry temperate microclimate. Some of the popular rice varieties grown in Australia include Amaroo, Reiziq, Quest, Jarrah, Koshihikari, Opus, Illabong, Langi, Doongara and Kyeema. According to ABARES, all cropping areas of Australia received average rainfall from November 1, 2014 to January 31, 2015. However, the Bureau of Meteorology forecasts a slightly warmer temperatures from February 1 - April 30, 2015.

USDA estimates Australian paddy rice production to decline to around 700,000 tons (around 504,000 tons of rice, basis milled) in MY 2014-15 (April - March), down about 15% from an estimated 833,000 tons of paddy rice (around 600,000 tons of rice, basis milled) produced last year. It estimates Australia to produce a yield of 10 tons per hectare during the marketing year, down about 9% from around 10.96 tons per hectare produced last year.

Global Rice Quotes February 11th, 2015 Long grain white rice - high quality Thailand 100% B grade 415-425

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Vietnam 5% broken

350-360

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India 5% broken

395-405

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Pakistan 5% broken

345-355

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Myanmar 5% broken

410-420

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Cambodia 5% broken

430-440

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U.S. 4% broken

480-490

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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Uruguay 5% broken

NQ

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Argentina 5% broken

NQ

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Long grain white rice - low quality Thailand 25% broken

365-375

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Vietnam 25% broken

325-335

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Pakistan 25% broken

305-315

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Cambodia 25% broken 410-420

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India 25% broken

360-370

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U.S. 15% broken

470-480

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Long grain parboiled rice Thailand parboiled 100% stxd

405-415

Pakistan parboiled 5% broken stxd

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India parboiled 5% broken stxd 390-400

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U.S. parboiled 4% broken

555-565

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Brazil parboiled 5% broken

570-580

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Uruguay parboiled 5% broken NQ

↓

385-395

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Long grain fragrant rice Thailand Hommali 92% Vietnam Jasmine

920-930 445-455

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India basmati 2% broken

NQ

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Pakistan basmati 2% broken

NQ

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Cambodia Phka Mails 785-795

↓

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Brokens 320-330

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Vietnam 100% broken 305-315

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Thailand A1 Super

Pakistan 100% broken stxd Cambodia A1 Super

275-285

365-375

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India 100% broken stxd

295-305

Egypt medium grain brokens

NQ

U.S. pet food

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380-390

Brazil half grain

NQ

↓

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

Oryza Afternoon Recap - Chicago Rough Rice Futures Bounce Higher as Market Attempts to Establish Price Floor; Grains Recover Despite Continued Weakness in Crude Feb 11, 2015

Chicago rough rice futures for Mar delivery settled 14.5 cents per cwt (about $3 per ton) higher at $10.380 per cwt (about $229 per ton). Rough rice futures bounced higher today as the market continues to attempt put in a firm bottom before a true recovery can get underway. Market participants appear to be taking a wait and see attitude when it comes to increasing buy orders in a meaningful way. The recent pattern of back-and-forth trading is indicative of a market that is in the process of forming a low and indicates that a recovery to the upside should soon follow. The other grains finished the day mostly higher as the market looked to shake off losses sustained yesterday in the wake of the release of the USDA’s S&D update; Soybeans closed about 0.9% higher at $9.7775 per bushel; wheat finished about 0.8% higher at $5.2575 per bushel, and corn finished the day about 0.6% lower at $3.8575 per bushel.

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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com U.S. stocks traded mostly lower on Wednesday as investors focused on developments in Greece's negotiations with the euro zone finance ministers. The Dow Jones Industrial Average fell more than 100 points before recovering to trade about 80 points lower in early afternoon trade in the absence of official announcements out of the Eurogroup meeting. Greek and European officials in Brussels discussed on Wednesday what could constitute a “bridge agreement'' for Greece once its bailout expires on Feb. 28, a Greek government official told Reuters. The meeting took place "in a very good climate'', the official added.

The Eurogroup meeting will likely be just part of the continuing negotiations as euro zone and Greek leaders have several scheduled discussions over the next few days. The Dow Jones Industrial Average traded down 100 points, or 0.57%, to 17,766. The S&P 500 traded down 8 points, or 0.37%, to 2,061, with utilities leading declines and information technology and consumer staples the only advancing sectors. The Nasdaq traded down 1 point, or 0.03%, to 4,786. Gold is trading about 1.1% lower, crude oil is seen trading about 2.2% lower, and the U.S. dollar is seen trading about 0.3% higher at about 1:00pm Chicago time.Tuesday, there were 2,340 contracts traded, up from 795 contracts traded on Monday. Open interest – the number of contracts outstanding – on Tuesday decreased by 103 contracts to 10,443.

Vietnam's Dong Thap Province Proposes to Adopt Paddy Stockpiling Policy Feb 11, 2015

The Dong Thap provincial government in Vietnam's Mekong Delta region has proposed to the Central government that it would adopt paddy stockpiling policy to curb price falls during the harvest time of the winter-spring crop, according to Bloomberg.The provincial government plans to buy around 350,000 tons of rice from now to March 15 and stockpile it for four months to protect prices from falling. Paddy prices are understood to have declined since the beginning of February. However, the price at which it is planning to procure paddy is not known.

The province harvested only 35% of the winter-spring crop and the output from the harvest is likely to peak in March 2015.Vietnam government introduced the paddy stockpiling policy last year and encouraged traders and millers to buy paddy from farmers and stockpile it but it could not effectively control price falls as many traders and millers were not ready to procure paddy due to storage problems.

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