26th august,2015 daily exclusive oryza rice e newsletter by riceplus magazine

Daily Exclusive ORYZA Rice E-Newsletter Page 1 of 14

August 26, 2015

Vol 5.Issue XIII

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Page 2 of 14

Drought May Reduce Indonesia's Paddy Rice Output by 800,000 Tons, Says Official Aug 25, 2015

On-going drought conditions are expected to reduce Indonesia's 2015 paddy rice production by about 800,000 tons, down from an estimated 75.5 million tons, according to Bloomberg.

The Director General of food crops at the Agriculture Ministry told reporters that about 350,000 hectares of rice fields have been affected due to drought. About 40,000 hectares of cultivated areas The country's statistics agency is estimating 2015 paddy rice output to reach around 75.55 million tons (around 47.6 million tons, basis milled) in 2015. The government is keen on achieving self-sufficiency in rice production and stop imports over the next few years.

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USDA estimates Indonesia to produce around 36.3 million tons of rice, basis milled (around 57.17 million tons, basis paddy), and import around 1.25 million tons of rice in MY 2014-15 (October - September). Some analysts are forecasting imports to reach about 1.6 million tons.

The government of Indonesia has so not imported any rice in this year. In 2014, it imported around 450,000 tons last year.

Global Rice Quotes August 26th, 2015 Long grain white rice - high quality Thailand 100% B grade 370-380

↔

Vietnam 5% broken

325-335

↔

India 5% broken

360-370

↔

Pakistan 5% broken

325-335

↔

Myanmar 5% broken

405-415

↔

Cambodia 5% broken

425-435

↔

U.S. 4% broken 485-495

↔

Uruguay 5% broken

535-545

↔

Argentina 5% broken

530-540

↔

Long grain white rice - low quality Thailand 25% broken

340-350

↔

Vietnam 25% broken

315-325

↔

Pakistan 25% broken

295-305

↔

Cambodia 25% broken 410-420

↔

India 25% broken

335-345

↔

U.S. 15% broken

460-470

↔

Long grain parboiled rice

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Page 4 of 14 Thailand parboiled 100% stxd

365-375

Pakistan parboiled 5% broken stxd

↔

415-425

↔

India parboiled 5% broken stxd 355-365

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U.S. parboiled 4% broken

570-580

↔

Brazil parboiled 5% broken

545-555

↔

Uruguay parboiled 5% broken NQ

↔

Long grain fragrant rice Thailand Hommali 92% 835-845

↔

Vietnam Jasmine

↔

455-465

India basmati 2% broken

NQ

↔

Pakistan basmati 2% broken

NQ

↔

Cambodia Phka Mails

835-845

↔

315-325

↔

Vietnam 100% broken 305-315

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Brokens Thailand A1 Super

Pakistan 100% broken stxd Cambodia A1 Super

280-290

350-360

↔

India 100% broken stxd 295-305

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Egypt medium grain brokens

NQ

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U.S. pet food

↔

335-345

Brazil half grain NQ

↔

↔

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

Asia Rice Quotes Unchanged Today Daily Exclusive ORYZA Rice E-Newsletter Contents are published with permission of ORYZA.com

Page 5 of 14

Aug 25, 2015

Asia rice sellers kept their quotes mostly unchanged today.

5% Broken Rice Thailand 5% rice is indicated at around $360 - $370 per ton, about $35 per ton premium on Vietnam 5% rice shown at around $325 - $335 per ton. India 5% rice is indicated at around $360 - $370 per ton, about $35 per ton premium on Pakistan 5% rice shown at around $325 - $335 per ton.

25% Broken Rice Thailand 25% rice is shown at around $340 - $350 per ton, about $25 per ton premium on Vietnam 25% rice shown at around $315- $325 per ton. India 25% rice is indicated at around $335 - $345 per ton, about $40 per ton premium on Pakistan 25% rice shown at around $295 $305 per ton.

Parboiled Rice Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice is indicated at around $355- $365 per ton, about $60 per ton discount to Pakistan parboiled rice was last shown at around $415 - $425 per ton.

100% Broken Rice Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, about $10 per ton from 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 $15 per ton premium on Pakistan broken sortexed rice shown at around $280 - $290 per ton.

Choosing Right Varieties Can Help Sustain Rice Yields in India Amid El Nino Concerns, Say Experts Aug 25, 2015

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Experts have noted that delayed planting and unevenly distributed rains across the country are likely to hamper the 2015-16 rice production though the on-going kharif rice acreage is ahead of last year as on August 21, 2015, according to local sources.

Total rice planted area stood at around 33.36 million hectares as of August 21, 2015, up about 4% from around 33.21 million hectares planted during the same time last year. However, according to data from the Agriculture Ministry, planting has been lagging from normal acreage (by this time of the year) in the states of Chhattisgarh, West Bengal and Odisha by around 5.6%, 19% and 27.5% respectively. Overall, the kharif rice planting area is lagging behind the normal by about 14% from the normal area of around 38.83 million hectares.

Meanwhile, the Indian Meteorological Department (IMD) has forecast a 16% deficit in the rainfall during the second half (August-September) of the monsoon season (June-September).

The weather bureau forecasts August to receive 10% deficit rainfall and a higher deficit in September. The south-west monsoon is deficient by about 10% between June 1 and August 24 due to the El Nino pattern, according to the IMD.

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Page 7 of 14

“Absolute rainfall may look good but distribution and frequency is important since sufficient water availability is important for paddy cultivation," the Director of the Central Rice Research Institute (CRRI) told local sources. He stated that transplanting has been delayed in several places due to uneven rains though there is no estimate of how much area has been sown late. He noted that in such a situation, choosing right varieties could help sustain yields. Sowing is expected to continue till September 1, 2015.

Experts are not expecting a significant production drop despite deficient rains in Andhra Pradesh, Telangana and Karnataka as excessive rains and consequent increase in acreage may compensate the shortfall.

Kuwait to Provide $13.6 Million Financial Assistance to Chad Rice Sector Aug 25, 2015

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Page 8 of 14

The Kuwait Fund for Arab Economic Development (KFAED) has signed an agreement with the government of Chad to provide about 4 million Kuwaiti Dinars (around $13.6 million) to help boost rice production in Chad, according to local sources.

The financial assistance from Kuwait will be specifically used to support the Rice Production Development Project in the Plain of Chari-Logone by constructing about 10 water irrigation schemes. The Project aims to help irrigate about 400 hectares of rice land in the Chari-Logone and thereby help increase rice production, improve farmers' incomes as well as support the government's food security strategy.

The loan from the KFAED will cover about 80.3% of the total cost of the project and the remaining shall be borne by the government of Chad, according to local sources. The loan bears an interest rate of 1.5% per annum and has to be repaid in 44 semi-annual instalments.

The KFAED had earlier provided four loans of around 12.3 million Kuwaiti Dinars (around $41.82 million) to the Chad government to improve agriculture.

Chad's Minister of Planning and International Cooperation and the Deputy Director-General of KFAED reportedly signed the loan agreement.

According to USDA, Chad produced about 114,000 tons of milled rice and imported around 30,000 tons in 2013-14 (October - Spetember) to meet a consumption demand of around 144,000 tons.

Oryza Afternoon Recap - Chicago Rough Rice Futures Remain Under Pressure as Corn and Wheat Turn Negative Aug 25, 2015

Chicago rough rice futures for Nov delivery settled 5.5 cents per cwt (about $1 per ton) lower at $11.625 per cwt (about $256 per ton). The other grains finished the day with mixed results; Soybeans closed about 0.4% higher at $8.7775 per bushel; wheat finished about 1.7% lower at $4.9950 per bushel, and corn finished the day about 0.9% lower at $3.7700 per bushel.

U.S. stocks jumped about 1% or more on Tuesday, attempting a bounce after the Dow's worst three-day point drop in history, as a recovery in oil prices and overnight easing in China helped investor sentiment. The major averages more than halved losses after rebounding in morning trade, with the Dow up only about 200 points after earlier gaining as much as 441 points. The

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S&P 500 also pared gains to dip in and out of correction territory. However, the gains fell short of recouping Monday's more-than-3.5% plunge and the Dow remains on pace for its biggest monthly percentage loss since February 2009 and the Nasdaq since 2008.

The S&P 500 is on track for its largest percentage loss since May 2010. U.S. stock index futures extended gains after the Chinese central bank announced plans early in the morning ET to cut its one year lending rate to 4.6%, which the People's Bank of China said was provide long-term liquidity and help support the economy. Housing data out Tuesday missed expectations slightly but continued to indicate strength in the market. New home sales figures for July came in at an annual rate at 507,000. The Case-Shiller home price indices for June showing home prices rose less than expected.

The Dow Jones Industrial Average traded up 345 points, or 2.18%, at 16,216. The S&P 500 traded up 43 points, or 2.25%, at 1,935, with information technology leading all 10 sectors except utilities higher. Consumer discretionary and health care are the only sectors positive yearto-date. The Nasdaq traded up 150 points, or 3.32%, at 4,676. The iShares Nasdaq Biotechnology ETF (IBB) gained more than 4 percent. Gold is trading about 1.2% lower, crude oil is seen trading about 1.9% higher, and the U.S. dollar is seen trading about 1.2% higher about 2:45pm Chicago time.

Monday, there were 2,612 contracts traded, up from 2,026 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday decreased by 33 contracts to 10,794.

Philippines Fixes 2016 Paddy Rice Production Target at 20.09 Million Tons; Imports Not Ruled Out Aug 25, 2015

The Philippines is aiming to produce about 20.09 million tons of paddy rice in 2016, up about 6.5% from an estimated 18.86 million tons this year, according to Reuters.

The country is likely to miss its target of 20 million tons this year due to extended drought conditions. The Philippine Statistics Agency (PSA) estimates the country's 2015 paddy output at around 18.86 million tons, about 6% below the targeted 20.08 million tons and slightly down from last year's output of 18.97 million tons.

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The Food Security Chief told reporters that the government is finalizing plans to buy an additional 250,000 tons of rice before the end of this year. It is also reviewing the latest production forecast for 2015 to assess the need to import more rice in case the El NiĂąo intensifies.

The Agriculture Secretary hinted at the need for importing rice in the beginning of 2016 to ensure adequate stocks during the lean season (July - September).

The National Food Authority (NFA) has already imported 750,000 tons of rice (200,000 tons from Thailand and 550,000 tons from Vietnam) under government-to-government deals to ensure adequate stocks in the lean season (June – September). It has also allowed the private traders to import 805,200 tons of rice under the WTO minimum access volume (MAV) rule. The NFA is still authorized to import another 250,000 tons in case of adverse weather conditions.

Spanish Paddy and Rice Quotes Remain Stable in First Week of August 2015 Aug 25, 2015

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Spanish quotations for both paddy and milled rice remained relatively stable during the week August 3 - August 9, 2015 compared to those in the week July 27 - August 2, 2015, according to data released by the Ministry of Agriculture.

The data shows that Indica paddy in Badajoz grain exchange was firm at 280 euros (about $307) per ton during the two weeks. Indica paddy in Sevilla grain exchange was also firm at 286 euros (about $314) per ton on both weeks.

Japonica paddy in Badajoz grain exchange did not move from 290 euros (about $318) per ton during these two weeks. Japonica paddy in Sevilla grain exchange was firm at 286 euros (about $314) per ton on both weeks.

Milled rice in Tarragona was out at 580 euros (about $636) per ton during both the weeks. Milled rice in Valencia also remained firm at 597 euros (about $655) per ton on both weeks.

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Page 12 of 14

Oryza Overnight Recap – Chicago Rough Rice Futures Little Changed Overnight as US Grains Take Ques From Outside Markets Aug 25, 2015

Chicago rough rice futures for Sep delivery are currently paused 1.5 cents per cwt (about $0.33 per ton) lower at $11.380 per cwt (about $251 per ton) ahead of floor trading in Chicago. The other grains are seen trading higher ahead of early morning action; soybeans are currently seen trading about 1.5% higher, wheat is listed about 1.3% higher and corn is currently noted about 1.4% higher.

U.S. stock index futures pointed to a sharply higher open on Tuesday, recovering from the plunge seen in global stocks on Monday as mayhem in Chinese markets and interest rate fears dominated markets. Dow futures briefly rose more than 600 points in premarket trading, implying a 467 point bounce at the open and shrugging off deeper selling in China. Futures extended gains after the Chinese central bank announced plans to cut its one year lending rate to 4.6%, which the People's Bank of China said was provide long-term liquidity and help support the economy.

Equity markets in China fell further in the final hour of trading on Tuesday, with the Shanghai Composite settling below the key 3,000 mark, to end the day down 7.6%.European equities bucked the weakness seen in Asia, trading firmly in the green. The pan-European Stoxx 600 surged over 4%, with French, German and U.K. stocks all up between 3.5 and 4.5%. Basic resources stocks were the key outperformer, shooting around 7% higher. On the data front, there are a flurry of housing market indicators due Tuesday, with the Case-Shiller home price indices for June showing home prices rose less than expected. Gold is currently trading about 0.2% lower, crude oil is seen trading about 3.7% higher, and the U.S. dollar is currently trading about 0.8% higher at 8:15am Chicago time.

Vietnam Rice Exports to Africa Increase Sharply in First Seven Months of 2015 Due to Low Prices Aug 25, 2015

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Vietnam rice exports to Africa increased about 52% to around 525,896 tons in the first seven months of 2015 from around 345,984 tons exported during the same time last year, local sources quoted the Ministry of Industry and Trade.

Sources from the Ministry's Department of told local sources that Vietnam's rice exports to Africa in the first seven months account for about 16% of total rice exports. Ghana, Ivory Coast, South Africa and Algeria remained major buyers from Africa so far this year, according to the Ministry sources. The increase in exports to African nations is attributed to lower prices of Vietnam rice compared to those of Thailand and India.

Currently Vietnam 25% broken rice is quoted at around $320 per ton compared to Thai 25% and India 25% at around $345 per ton and around $340 per ton respectively. On the other hand, Vietnam 5% broken rice is quoted at around $330 per ton compared to Thai 25% and India 25% at around $360 per ton and around $365 per ton respectively.

The sources also noted that Vietnam exported about 21,419 tons of rice worth $12 million to the U.A.E. during January - July 2015, up about 375 from last year.

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Page 14 of 14

Vietnam exported about 3.343 million tons of rice in January 1 - August 13, 2015, down about 22% from about 4.26 million tons of rice exported in first eight months of 2014, according to data from the Vietnam Food Association (VFA). The 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.

Tourists Can Now Enjoy Exclusive Rice Dishes at 'Rice Trotters' in Paris!

Aug 25, 2015

Star chef, Anthony Boucherm and his friend Laurianne Fertè d'Hoir have recently opened an exclusive rice restaurant called 'Rice Trotters;' in Rue Du ColisÊe, Paris, according to local sources.

Four different dishes from all the world as well as risotto will be served everyday. The restaurant is basically targeting various international tourists, according to local sources.

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