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Daily Global Rice E-Newsletter by Riceplus Magazine

Rice E-Newsletter
March 04 , 2015
V o l u m e 5, Issue I

Oryza U.S. Rough Rice Recap - Prices Slip

with Futures; Sellers Still Holding Out
Mar 03, 2015

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The U.S. cash market was slightly weaker today falling in sympathy with the futures market
however sellers remain few and far between although some believe they are beginning to get
nervous as planting approaches.
Buyers, on the hand, appear comfortable and well covered as most are showing little to no
interest for nearby shipment and limited demand as you get into April-May. As a result, things
were mostly quiet today.

Vietnam Rice Production Threatened by

Climate Conditions and Crop Diseases, Says
Agricultural Official
Mar 03, 2015

Dry weather and crop diseases are expected to reduce the rice output in Vietnam's northern
provinces, while salt water intrusion is expected to impact rice production in the southern
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Mekong River Delta, according to the Deputy Head of the Department of Cultivation under the
Ministry of Agriculture and Rural Development.
Local sources quoted the Deputy Head as saying that dry weather during the 2014-15 springwinter crop has led to early opening of the rice seeds which is not a good sign as they may be
exposed to cold weather towards the end of the season. He also added that during the 2014-15
season, average temperatures are about 0.5-1.5 degrees Celsius higher than normal temperatures
and due to this diseases are likely to develop impacting crop growth and output. He therefore
warned the local governments to make arrangements for any disease outbreaks.
Based on the National Hydrometeorology Forecasting Centre, the official noted that the northern
and central northern regions are likely to face droughts and water shortages during the next few
months.
The official also noted that more than 25,000 hectares of rice lands in the Mekong River Delta
(MRD) are likely to be affected by drought and salt water intrusion during the 2015 dry season
(mid-March to mid-April) as sea water is expected to enter 50 kilometers inside the provinces.
Most of the provinces have also been experiencing unseasonal rains and high tides. The
Agriculture Ministry is therefore recommending the people in affected areas to strengthen the
dyke system, dredge canals and reservoirs to store fresh water from rivers.
USDA estimates Vietnam to produce 45.2 million tons of paddy rice (around 28.25 million tons,
basis milled) in 2014-15. It estimates Vietnam to export about 6.7 million tons of rice in 2015, up
about 6% from around 6.325 million tons last year.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Tumble in Afternoon Trading as
Buying Interest Dries Up
Mar 03, 2015

Chicago rough rice futures for May delivery settled 17 cents per cwt (about $4 per ton) lower at
$10.625 per cwt (about $234 per ton). The other grains finished mixed today as soy products
continued lower, while corn and wheat mounted a recovery; Soybeans closed about 0.2% lower
at $10.1225 per bushel; wheat finished about 1.2% higher at $5.0060 per bushel, and corn
finished the day about 0.8% higher at $3.9100 per bushel.

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U.S. stocks came off recent highs to trade lower on Tuesday, as investors weighed international
headlines and auto sales that missed expectations. Major news later this week includes details on
the European Central Bank's quantitative easing program and the monthly jobs report on Friday.
The Dow Jones Industrial Average traded down 97 points, or 0.53%, to 18,191. The S&P 500
traded down 13 points, or 0.61%, to 2,104, with health care the greatest decliner and utilities and
energy the only sectors advancing. The Nasdaq traded down 37 points, or 0.74%, to 4,971. Gold
is trading about 0.4% lower, crude oil is seen trading about 0.8% higher, and the U.S. dollar is
seen trading about 0.2% lower at about 1:00pm Chicago time.
Monday, there were 491 contracts traded, down from 1,062 contracts traded on Friday. Open
interest the number of contracts outstanding on Monday decreased by 136 contracts to 9,128.

Oryza Overnight Recap Chicago Rough

Rice Futures Unchanged as Outside Markets
Provide Little in the Way of Price Direction
Mar 03, 2015

Chicago rough rice futures for May delivery are currently listed unchanged at $10.795 per cwt
(about $238 per ton) ahead of early floor trading in Chicago. The other grains are seen mixed this
morning: soybeans are currently seen about 0.4% lower, wheat is listed about 0.4% higher and
corn is currently noted about 0.5% higher.
U.S. stock index futures fell on Tuesday, amid earnings from big-name retailers. The slight
pullback comes a day after the Nasdaq Composite closed above 5,000 for the first time since
March 2000, with the Dow and the S&P 500 also hitting record highs. Vehicle sales data for
February will also be published, with expectations of a seasonally adjusted annual rate of 16.7
million versus 16.6 million in January. Investors will also eye oil prices on Tuesday, after a sharp
drop on Monday. Brent crude posted its biggest drop in a month on Monday, but recovered on
Tuesday to trade around $60.96. U.S. crude traded higher near $50.30. The big data point for the
week will be Friday's nonfarm payrolls report. Overseas, tension between Moscow and the West
is mounting following the death of Boris Nemtsov, a prominent critic of Russian President
Vladimir Putin. Gold is currently trading about 0.1% lower, crude oil is seen trading about 0.8%
higher, and the U.S. dollar is currently trading about 0.1% lower at 7:45am Chicago time.

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Vietnam, Pakistan Rice Quotes Up Today;

Other Asia Quotes Unchanged
Mar 03, 2015

Vietnam rice sellers increased their quotes for 5% broken rice and 100% broken rice by about $5
per ton each to around $370 - $380 per ton and $315- $325 per ton respectively. Pakistan rice
sellers increased most of their quotes by about $5 - $15 per ton. Other Asia rice sellers kept their
quotes mostly unchanged.
5% Broken Rice
Thailand 5% rice is quoted at around $405 - $415 per ton, about $35 per ton premium on
Vietnam 5% rice shown at around $370 - $380 per ton, up about $5 per ton from yesterday. India
5% rice is quoted at around $390 - $400 per ton, about $45 per ton premium on Pakistan 5% rice
quoted at around $345 - $355 per ton, up about $10 per ton from yesterday.
25% Broken Rice
Thailand 25% rice is quoted at around $365 - $375 per ton, about $20 per ton premium on
Vietnam 25% rice shown at around $345- $355 per ton. India 25% rice is quoted at around $355
- $365, about $50 per ton premium on Pakistan 25% rice quoted at around $305 - $315 per ton.
Parboiled Rice
Thailand parboiled rice is quoted at around $400 - $410 per ton. India parboiled rice is quoted at
around $385 - $395 per ton, about $5 per ton discount to Pakistan parboiled rice quoted at around
$390 - $400 per ton, up about $5 per ton from yesterday.
100% Broken Rice
Thailand broken rice, A1 Super, is quoted at around $320 - $330 per ton, about $5 per ton
premium on Vietnam 100% broken rice shown at around $315 - $325 per ton, up about $5 per
ton from yesterday. India's 100% broken rice is shown at around $280 - $290 per ton, about $10
per ton discount to Pakistan broken sortexed rice quoted at around $290 - $300 per ton, up about
$15 per ton from yesterday.

Myanmar Faces Difficulty in Short Listing

Exporters for China Deal
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Mar 03, 2015

The Myanmar Rice Federation (MRF) is in the process of short listing companies to export rice
to China under a new export deal, according to local sources.Last week, the MRF has signed a
deal with China's COFCO to export 100,000 tons of rice in separate monthly shipments in
accordance with market prices at the time of shipment. The deal signifies long-awaited
legalization of Myanmars rice exports to China. Myanmars rice exports were earlier considered
as illegal by the Chinese authorities due to lack of a proper trade agreement between the two
countries.
China sought rice shipments from experienced companies in order to ensure that the rice is in
accordance with the Chinese specifications. Initially, the MRF selected nine companies out of
100 companies but the Chinese authorities rejected them as they lacked adequate experience and
sought a new list of companies.The MRF had called in applications from interested firms to
register with it by February 27, 2015. However, the MRF did not receive any applications
according to local sources.

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According to the agreement, rice exporters should get their rice inspected and accredited with the
China's General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and
then seek approval from the China Certification and Inspection Group before exporting rice to
China. The MRF Joint Secretary noted that they would begin exporting rice to China from April.
He noted that the MRF is taking all measures to meet the quality and variety standards in
accordance with China's specifications.
Currently export prices of Myanmar 5% broken rice is quoted at around $415 per ton and 25%
broken rice is quoted at around $325 per ton.
Around 1.1 million tons of rice have been exported in the first nine months of 2014-15, of which
800,000 tons comprise of exports to China through the borders. The Myanmar government is
targeting to export around 2.5 million tons of rice in FY 2015-16 (April - March), up about 67%
from an estimated 1.5 million tons in FY 2014-15.
USDA estimates Myanmar to produce 18.98 million tons of paddy rice (around 12.15 million
tons, milled basis) and export around 1.55 million tons of rice in MY 2014-15 (January December 2015).

Italian Paddy Rice Quotes Stable and Firm

Mar 03, 2015

Italian paddy prices are stable and remain at levels above the same time last year.
Below are farm gate paddy quotes supplied by Milan Grain Exchange, as of February 24:
Arborio-Volano rice was shown at 725-755 euros (about $ 811-845) per ton, unchanged from the
prior two weeks.
Balilla paddy prices are firm at 315-330 euros (about $ 352-369) per ton, unchanged from the
prior two weeks.
Lido and similar paddy varieties are unchanged at 360-375 euros (about $ 403-419) per ton over
the last two weeks.
Padano-Argo is shown at 570-670 euros (about $ 638-750) per ton, unchanged from the prior
two weeks.
Vialone Nano has decreased at 800-850 euros (about $ 895-951) from 810-860 euros (about $
906-962) per ton of February 17, losing 10 euros (about $11) a ton from the previous week.

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Thaibonnet and similar Indica varieties remain at a low level but are slowly increasing. On
February 17 they quoted 298-308 euros (about $ 333-344) per ton with prices advancing to 308318 euros (about $ 344-356) per ton on February 24.
Sant'Andrea is quoted 560-610 euros (about $ 626-682) per ton on February 24, unchanged from
the prior week; Ariete and similar varieties received no quotations on both weeks.
Carnaroli was fixed at 725-755 euros (about $ 811-845) per ton, unchanged from the prior two
weeks.
Baldo paddy prices were firm at 575-625 euros (about $ 643-700) per ton, unchanged from the
prior two weeks
Roma is firm at 590-620 euros (about $ 660-694) per ton, unchanged from the prior two weeks.
Selenio was shown at 345-370 euros (about $ 386-414) per ton on February 24, unchanged from
a week prior.

Government of Bangladesh Announces 2015

Boro Procurement Prices for Paddy and Rice
Mar 03, 2015

The government of Bangladesh is planning to procure one million tons of 2015 Boro (January May) paddy and 100,000 tons of Boro rice between May 1, 2015 and August 31, 2015, according
to local sources.
The Food Minister was quoted as saying at a press briefing that the government has fixed the
procurement price for paddy at Tk 22 per kilogram (around $283 per ton) and that for rice at Tk
32 per kilogram (around $412 per ton). He noted that the production cost of paddy is considered
to be Tk 20 per kilogram (around $257 per ton) and that of rice is considered to be Tk 27 per
kilogram (around $347 per ton).
The government procured 1.06 million tons of 2014 Boro rice. It has procured around 319,977
tons of 2014-15 Aman (April - December) rice as of February 28, 2015, according to the Food
Ministry data.
The Minister noted that the government was expecting the total output from the 2015 Boro crop
at around 19 million tons, up about 2% from around 18.78 million tons produced in 2014.

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According to the Department of Agriculture Extension (DAE) data, boro crop was planted in
around 478,000 hectares.

Bangladesh produced around 34.449 million tons of rice, basis milled, in FY 2013-14 (July June), up about 2.7% from around 33.833 million tons produced in FY 2012-13, according to
DAE data.
USDA estimates Bangladesh to produce around 34.6 million tons of milled rice in MY 2014-15
(May - April), up about 1% from an estimated 34.39 million tons in MY 2013-14. It estimates
Bangladesh to import around 600,000 tons of rice in 2015, down about 20% from an estimated
751,000 tons in 2014.

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Government of India Ensures Remunerative

Prices for Rice Farmers, Says Junior Food
Minister

Mar 03, 2015

The government has been taking sufficient measures to ensure that the farmers of rice and wheat
are paid the minimum support price (MSP) as specified by the government, said the Minister of
State for Consumer Affairs, Food and Public Distribution in the Parliament today, according to
local sources.He noted that the Food Corporation of India (FCI), the State Government Agencies,
Cooperative societies and some self help groups have been striving to ensure the farmers receive
the government specified MSP for rice and wheat.
The Minister apprised the Parliament that the FCI and state agencies open adequate number of
procurement centers and also take enough measures to let the farmers know about the
procurement operations and MSP through the media. He also noted that the government ensures

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that payment is made on time to the farmers. Payment is preferably made through Account Payee
Cheques or electronic mode.
He stated that the government has been ensuring that the MSP is increased from time to time
keeping in view the increased production costs as well as to encourage farmers to sell their paddy
or wheat output to the government.
The government of India procured around 2.774 million tons of rice in kharif Marketing Season
(KMS) 2014-15 as of February 16, 2014. The government of India also fixed rice procurement
target for KMS 2014-15 at about 35.109 million tons rice, which include 30.050 million tons
from kharif crop and about 5.059 million tons rice from rabi crop. The Indian government
procured about 31.839 million tons of rice during the KMS 2013-14, according to the
Agriculture Ministry.
For the 2014-15 kharif marketing season (KMS), the government increased the MSP for
common grade paddy by about 3.8% to around Rs.1,310 per quintal (around $218 per ton) and
increased the MSP for Grade 'A' paddy by about 4% to around Rs.1,345 per quintal (around $223
per ton).

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