9th september ,2015 daily exclusive oryza rice e newsletter by riceplus magazine

Daily Exclusive ORYZA Rice E-Newsletter Page 1 of 16

September 09,2015

Vol 5.Issue XIv

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Page 2 of 16

Cambodia Rice Exports Increase Sharply in First Eight Months of 2015 Sep 08, 2015

Cambodia has exported around 342,136 tons of milled rice in the first eight months of 2015, up about 46% from around 233,859 tons exported during the same period last year, local sources quoted data from the Secretariat of One Window Service for Rice Export Formality.The top three destinations during the eight-month period were China (74,949 tons), France (45,493 tons) and Poland (38,370 tons), according to the official data.

In August 2015, Cambodia exported around 29,819 tons of milled rice, up about 5% from around 28,492 tons in July 2015 and slightly down from around 29,871 tons exported in August 2014.Cambodia exported around 370,000 tons of rice worth $247 million in 2014.

The government of Cambodia aimed to increase rice exports to one million tons in 2015 but noted that that it is unlikely to achieve the target due to inadequate milling facilities and infrastructure as well as lack of access to funding.

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USDA estimates Cambodia to export 1.1 million tons of rice (including official and unofficial exports to Vietnam and Thailand through borders) in 2015, up about 10% from an estimated 1 million tons in 2014.

Government of India to Involve Private Players in 2015-16 KMS Rice Procurement Operations Sep 08, 2015

The government of India is planning to involve private players in the rice procurement operations of the 2015-16 kharif marketing season (October - September) in the eastern states of Assam, Bihar, eastern Uttar Pradesh, Jharkhand and West Bengal in order to improve efficiency in transportation, packaging and storage facilities in those states, according to Financial Express.

The Food Corporation of India reportedly does not have a robust procurement mechanism in these states and often forces farmers to go for a distress sale. In order to avoid such a situation and help farmers receive the minimum support price (MSP), the Food Ministry has decided to involve private players in the rice procurement process.

As per the new directive, private players would buy paddy from various clusters (of farmers) identified by the respective state governments and deliver the custom milled rice (CMR) to the

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FCI or state government-owned agency godowns. A cluster would be formed wherever there is a possibility of procuring about 100,000 tons of rice (paddy equivalent) and covering about 500 to 1,000 hectares of land. Private parties are allowed to open as many purchase centers as possible in the allotted cluster.

“Private parties would be engaged in procurement operations after e-tendering and the parties would be short-listed on the basis of acquisitions cost, including incidentals such as packaging, transportation and storage of grain quoted by agencies,” a Food Ministry official was quoted.

“On the delivery of CMR to FCI or state-owned corporations, the private players would be reimbursed the MSP and statutory charges paid by them upon production of proof of payment, besides the incidentals quoted in the tender document,” he added.

The government of India is planning to procure around 30 million tons of rice in the KMS 201516, including around 2.7 million tons from Uttar Pradesh, 2 million tons from Bihar, 1.8 million tons from west Bengal, 300,000 tons from Jharkhand and 50,000 tons from Assam.

The MSP for common and grade A varieties of paddy is respectively fixed at Rs.1,410 (around $211 per ton) and Rs.1,450 (around $217 per ton) per quintal for the 2015-16 KMS. The Food Corporation of India (FCI), the nodal agency for food grain procurement and distribution has procured around 31.518 million tons of rice as of July 15, 2015 in KMS 2014-15 (October 2014 - September 2015), down about 1% from last year. The Indian government is targeting to procure 35.109 million tons of rice during the KMS 2014-15.

Global Rice Quotes Global Rice Quotes September 8th, 2015 Long grain white rice - high quality Thailand 100% B grade 355-365 ↔ Vietnam 5% broken

320-330 ↔

India 5% broken

365-375 ↔

Pakistan 5% broken

315-325 ↔

Myanmar 5% broken

415-425 ↔

Cambodia 5% broken 425-435 ↔

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Page 5 of 16 U.S. 4% broken

530-540 ↔

Uruguay 5% broken

535-545 ↔

Argentina 5% broken 530-540 ↔ Long grain white rice - low quality Thailand 25% broken 330-340 ↔ Vietnam 25% broken 315-325 ↔ Pakistan 25% broken 290-300 ↔ Cambodia 25% broken 410-420 ↔ India 25% broken

335-345 ↔

U.S. 15% broken

500-510 ↔

Long grain parboiled rice Thailand parboiled 100% stxd

350-360 ↔

Pakistan parboiled 5% broken stxd 415-425 ↔ India parboiled 5% broken stxd

355-365 ↔

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%

810-820 ↓

Vietnam Jasmine

450-460 ↔

India basmati 2% broken

NQ

↔

Pakistan basmati 2% broken NQ

↔

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Page 6 of 16 Cambodia Phka Mails

830-840 ↔

Brokens Thailand A1 Super

305-315 ↔

Vietnam 100% broken

310-320 ↔

Pakistan 100% broken stxd

275-285 ↔

Cambodia A1 Super

355-365 ↔

India 100% broken stxd

300-310 ↔

Egypt medium grain brokens NQ

↔

U.S. pet food

335-345 ↔

Brazil half grain

NQ

↔

Medium grain milled U.S. Calrose 4% broken 830-840 ↔ Egypt medium grain 6% NQ

↔

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

Indonesia Plans to Provide Rice Insurance Subsidy to Farmers for 2015-16 Season Sep 08, 2015

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The government of Indonesia has decided to provide rice insurance subsidy to farmers for the 2015-16 rice growing season (October 2015 - March 2016), Bloomberg quoted local sources.

The secretary for Director-General of Agriculture Infrastructure and Facility at Agriculture Ministry told local sources that the government would provide a subsidy of 144,000 Rupiah (around $10) per hectare in the insurance premium. Farmers can pay only 36,000 Rupiah (around $2.5) per hectare against the actual premium of 180,000 Rupiah (around $12.5). The insured value of the crop in case of crop failure is 6 million Rupiah (around $418) The government will reportedly set aside of 150 billion Rupiah (around $10.44 million) for 1 million hectares of rice fields. It will prioritize insurance for rice farmers in 16 provinces under special program.

Meanwhile, the Bulog Chief has told local sources that the agency has so far bought 2.2 million tons of rice from farmers and it has 1.7 million tons in its stockpile.

The government is targeting rice sufficiency this year and avoid imports. Last week, the Indonesian Agriculture Ministry Secretary General reiterated that the country's rice production is safe despite the on-going dry weather conditions due to the El Nino weather pattern. He told reporters that the Ministry is expecting a 7% y/y increase in paddy rice production to around 75.2 million tons in 2015 from around 70 million tons in 2014.

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Italian Paddy Rice Acreage Increases About 3% in 2015-16 Crop Year Sep 08, 2015

Oryza.com -

The Italian paddy rice acreage in 2015-16 (September - August) stands at around 227,329 hectares, according to the final data released by Ente Nazionale Risi, the National Agency for Rice from about 4,000 farmers.

Italy's paddy rice acreage has increased by around 7,797 hectares or about 3.5% from last crop year. The total paddy acreage in the country stood at around 219,532 hectares in 2014.

The acreage for Long A varieties stood at around 125,986 hectares in 2015-16 crop year, up about 20.5% from around 104,507 hectares in 2014-15 crop year. However, the acreage for Long B varieties stood at around 34,926 hectares in 2015-16 crop year, down about 36.8% from around 55,298 hectares in 2014-15 crop year.

Area for round varieties increased about 8.1% to around 56,946 hectares from around 52,956 hectares last year. Area from medium varieties increased by about 34.1% to around 9,471 hectares from around 7,060 hectares last year.

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Iraq Still Considering Tender to Purchase At Least 30,000 Tons of Rice Due to High Prices Sep 08, 2015

Iraq is still considering its tender to purchase at least 30,000 tons of rice in international tenders from the U.S., Uruguay, Argentina, Brazil and India, Reuters quoted European traders. The tenders closed on September 6, 2015 with offers having to remain valid till September 10, 2015.

India offered lowest bids in the tender but no purchase decision is understood to have been made.

India offered three bids of $537 per ton, $538 per ton and $539 per ton (c&f basis) for 50,000 tons of IR-64 grade rice; the U.S. offered a bid of $559 per ton (c&f); Argentina offered a bid of $547 per ton (c&f), Uruguay offered a bid at $549 per ton (c&f); and Brazil reportedly did not make any offer, according to the European traders.

In the last tender to buy at least 30,000 tons, Iraq reportedly purchased 142,000 tons of rice from Argentina and Uruguay, including 30,000 tons from Uruguay at $605 per ton, 30,000 tons from Argentina at $602 per ton, 30,000 tons from Argentina at $603 per ton and 52,000 tons from Argentina at $608.85 per ton.

Oryza U.S. Rough Rice Recap - Prices Remain despite U.S. IGB Offer Being Higher than South American Offers Sep 08, 2015

The U.S. cash market was firmer today rallying in sympathy with the futures market and a lack of farmer sell interest as buyers look for greater coverage. Analysts note that anticipation for a bullish WASDE report on Friday has kept many sellers on the sidelines.

Some analysts are beginning to raise concerns about higher prices in the U.S.; noting that the steady pace of price increases will not likely be sustainable considering that milled rice offers out of South America for the latest Iraqi tender were more than $25 per ton cheaper than offers out of the U.S. In the meantime, the USDA estimates that as of September 6th, 35% of the crop had been harvested which was 10% ahead of this time last year and 1% ahead of the previous 5-year average. As of now, the USDA estimates that 30% of the rice crop in Arkansas had been harvested compared to , 1% in California, 90% in Louisiana, 34% in Mississippi, 2% in Missouri, and 76% in Texas.

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The USDA estimates that 65% percent of the crop is in good to excellent condition, which was 1% worse than last week and 9% worse than this time last year. As of now, the USDA estimates that 64% of the crop in Arkansas is in good to excellent condition compared to, 70% in California, 61% in Louisiana, 76% in Mississippi, 63% in Missouri, and 52% in Texas.

Oryza Afternoon Recap - Chicago Rough Rice Futures Begin the Week on Positive Note as Markets Open Higher Following Extended Holiday Weekend Sep 08, 2015

Chicago rough rice futures for Nov delivery settled 15.5 cents per cwt (about $3 per ton) higher at $12.265 per cwt (about $270 per ton). The other grains finished the day higher; Soybeans closed about 1.5% higher at $8.7925 per bushel; wheat finished about 1.6% higher at $4.7500 per bushel, and corn finished the day about 1.5% higher at $3.6825 per bushel.

U.S. stocks traded sharply higher Tuesday, trying for recovery after the long weekend and their second-worst week for the year. The major averages traded between 1.5% to about 2% higher.

The Dow Jones industrial average traded about 280 points higher after earlier adding nearly 338 points. The S&P 500 and Nasdaq composite held out of correction territory, while the Dow was less than 1% away from exiting correction mode. U.S. stocks closed more than 1% lower Friday, when mainland Chinese exchanges were closed, under pressure from uncertainty over developments in China and the timing of a U.S. rate hike. The major averages closed down about 3% for the week, their second-worst for the year. Mainland Chinese stock markets reopened Monday after a four-day weekend for the commemoration of the end of World War II. U.S. markets were closed Monday for the Labor Day holiday. Asian stocks closed mixed Tuesday.

Japan's blue-chip Nikkei stock index closed down 2.4% and move into negative territory for the year so far as the weak trade numbers fueled concerns about demand for Japanese exports from China. U.S. markets remain focused on the Federal Reserve ahead of its key policy meeting next week, when policymakers could raise interest rates for the first time in more than nine years.

Many analysts said last Friday's nonfarm payrolls report gives the central bank enough support for the move. The Dow Jones Industrial Average traded up 281 points, or 1.7%, at 16,382. The S&P 500 traded up 30 points, or 1.6%, at 1,951, with industrials leading all 10 sectors higher.

The Nasdaq traded up 81 points, or 1.7%, at 4,765. Gold is trading nearly flat, crude oil is seen trading about 0.9% lower, and the U.S. dollar is seen trading about 0.2% lower about 1:00pm Chicago time.

Friday, there were 207 contracts traded, down from 516 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday decreased by 23 contracts to 9,692.

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Thailand Rice Auction Receives Lukewarm Response Sep 08, 2015

The latest rice auction conducted by the Thai government received a lukewarm response from traders. The Thai military government has sold about 246,793 tons of stockpiled rice to 14 local traders in an open tender today raising about 2.33 billion baht (around $64.40 million), Reuters quoted a Commerce Ministry official.

The government put up around 732,806 tons of rice, including Thai 5% broken white rice and Thai Jasmine rice, for auction as part of efforts to offload rice stocks accumulated under the rice pledging scheme introduced by the previous government. The military Government could only sell 34% of the rice put up for auction due to supply of new rice and a decline in market, the Director General of the Foreign Trade Department was quoted.

This is the sixth auction this year and tenth one after the military government took over in May 2014.The government sold around 4.31 million tons of rice raising around 46.3 billion baht (around $1.3 billion) from the first nine auctions.

The military government is still holding over 14 million tons of rice in its stockpiles. It has been planning to auction around 1.29 million tons of spoilt rice for industrial use in this month.

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Pakistan Exporters Urge Government to Speed Up Rice-Energy Barter Trade with Iran Sep 08, 2015

The members of the Rice Exporters Association of Pakistan (REAP) urged the government to speed up the rice-energy barter trade with Iran in order to enhance the country's rice exports and save the deteriorating rice sector, according to local sources.

A REAP official told local sources that Pakistan had proposed to export rice to Iran in exchange for dues payable for imported electricity. A Pakistani delegation that visited Iran last week reportedly finalized a deal to continue purchasing 74 megawatts of energy from the Iranian company Tavanir. “If the Pakistan and Iranian governments agree, the exporters will soon export one million tons of basmati rice,� said the REAP official.

Pakistan's rice sector has been struggling with increasing stocks, declining demand and falling prices. According to local sources, currently, Pakistan has about 4 million tons of surplus rice, of which 3.2 million tons are non-basmati and about 700,000 tons are basmati. The REAP Chairman reiterated that Pakistan owes about $100 million to Iran for electricity import and a faster deal would be beneficial to both the countries.

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Meanwhile, Iran's Ministry of National Food Security and Research confirmed that the government is working on the proposal.

Iran is one of the largest importers of rice accounting for about 11% of the world's annual rice imports. Prior to sanctions by the western countries, Pakistan used to export around 700,000 tons of rice to Iran annually. Pakistani rice still enjoys a good reputation in Iran according to traders.

Geographical proximity between the two nations is an added advantage for Pakistan rice exporters, they say.

Rice exporters welcomed Iran's decision to lift sanctions on Pakistan rice from October.

However, exporters say in order to ensure smooth export procedures with Iran, a proper currency transfer system is necessary. Pakistan's trade was routed through the Bank of New York (BNY).

But due to sanctions, the U.S. suspended the trade route through the BNY. Pakistan exported around 155,570 tons of rice (including basmati and non-basmati) in the first month of FY 2015-16 (July - June), down about 14% from around 181,398 tons exported during the same period in FY 2014-15. Pakistan exported around 3.93 million tons of rice in FY 201415 (July-June), up about 6% from around 3.72 million tons exported in FY 2013-14.

Thailand Rice Exports Increase Sharply in July 2015 Sep 08, 2015

Thai rice exports increased sharply in July 2015 after declining about 27% m/m in June 2015, according to data from Thai Rice Exporters Association (TREA). Thailand has exported around 734,947 tons of rice in July 2015, up about 7% from around 685,768 tons exported in June 2015, and down about 22% from around 941,691 tons exported in July 2014, according to TREA. The increase is attributed to higher demand on the ideas of an expected decline in supply in Thailand, as well as globally, owing to drought-inducing El Nino weather pattern.

In value terms, Thailand’s rice exports earned about $339.6 million from total rice exports in July 2015, up about 6% from around $320.26 million earned in June 2015, and down about 25% from around $453.09 million earned in July 2014.

In July 2015, white rice exports accounted for around 382,155 tons (about 46.7% of total July 2015 exports), Hom Mali rice exports accounted for about 762,117 tons (about 14.6% of total July exports), brokens accounted for 44,317 tons (about 11.8% of total July 2015 exports), glutinous variety accounted for 7,449 tons (about 1.6% of total July 2015 exports), parboiled rice accounted for about 191,624 tons (about 24% of total July 2015 exports) and husked/brown rice accounted for about 4,124 tons (about 0.7% of total July 2015 exports).

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Average export prices of white rice, Hommali and glutinous varieties declined during the month, while those of brokens, parboiled and husked rice increased during the month. Average export prices of white rice witnessed the highest decline of about 2.86% month-on-month in July 2015, while average export prices of brokens increased by about 6.73% month-on-month during the month.

Thailand exported around 5.19 million tons of rice in the first seven months of 2015, down about 8% from around 5.62 million tons exported during the same period last year. Thai government is keen on exporting over 10 million tons of rice this year.

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Thailand Rice Sellers Lower Some of Their Quotes; Other Asia Rice Quotes Unchanged Today Sep 08, 2015

Thailand rice sellers lowered their quotes for Hommali rice by about $5 per ton to around $810$820 per ton today. Other Asia rice sellers kept their quotes mostly unchanged.

5% Broken Rice Thailand 5% rice is indicated at around $345 - $355 per ton, about $25 per ton premium on Vietnam 5% rice shown at around $320 - $330 per ton. India 5% rice is indicated at around $365 - $375 per ton, about $50 per ton premium on Pakistan 5% rice shown at around $315 - $325 per ton.

25% Broken Rice Thailand 25% rice is shown at around $330 - $340 per ton, about $15 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 $45 per ton premium on Pakistan 25% rice shown at around $290 $300 per ton.

Parboiled Rice Thailand parboiled rice is indicated at around $350 - $360 per ton. India parboiled rice is indicated at around $355- $365 per ton, about $60 per ton discount to Pakistan parboiled rice last shown at around $415 - $425 per ton.

100% Broken Rice Thailand broken rice, A1 Super, is indicated at around $305 - $315 per ton, about $5 per ton from premium on Vietnam 100% broken rice shown at around $300 - $310 per ton. India's 100% broken rice is shown at around $300 - $310 per ton, about $25 per ton premium on Pakistan broken sortexed rice shown at around $275 - $285 per ton.

Philippines to Import Additional 750,000 Tons of Rice on El Nino Concerns Daily Exclusive ORYZA Rice E-Newsletter Contents are published with permission of ORYZA.com

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Sep 08, 2015

The National Food Authority (NFA) of the Philippines will import an additional 750,000 tons of rice to boost stocks as drought-inducing El Nino weather pattern is likely to cut the country's production, according to Reuters.The NFA will reportedly call for tenders from the governments of Thailand, Vietnam and Cambodia for importing 25% broken rice on September 17, 2015. The deliveries will begin from November this year and continue till March next year. The NFA is likely to formally announce its import plans on September 9, 2015.The agency has imported 885,182 tons of rice so far this year, including 685,182 tons from Vietnam and 200,000 tons from Thailand. Of this, 750,000 tons were imported under government-to-government (G2G) deals from Vietnam (550,000 tons) and Thailand (200,000 tons). It has also allowed private traders to import around 805,200 tons of 25% broken rice at 35% tariff under the WTO Minimum Access Volume (MAV) country specific quota (CSQ) before November 30, 2015.

This year's rice imports may cross 2 million tons including the 300,000 tons under last year's MAV, which arrived early this year as well the authorized 1.8 million tons.The local weather bureau has warned of an intensifying El Nino in the coming months significantly affecting paddy output in central, southern and northern provinces. The Philippine Statistics Agency (PSA) has estimated 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. The Philippines paddy output in the first half of 2015 was recorded at around 8.3 million tons, down about 1% from last year's 8.39 million tons and down about 2.4% from the targeted 8.5 million tons. The PSA forecasts rice output in the second half of 2015 to drop about 0.5% to around 10.54 million tons.

As of August 13, 2015, El Nino induced drought damage to the rice sector reached 58,485 tons of rice worth P 1.09 billion (around $23 million), according to a report from the Department of Agriculture (DA). About 28,734 rice farmers were affected in about 30,665 hectares of land.

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