Daily Exclusive ORYZA Rice E-Newsletter

April 11,2016
Vol 7,Issue III

www.ricepluss.com

www.riceplusmagazine.blogspot.com

Daily Exclusive ORYZA Rice E-Newsletter

Iraq Seeks to Buy At Least 30,000 Tons of Rice in Tenders
Apr 08, 2016

Iraq is seeking to buy at least 30,000 tons of rice in tenders from the U.S., Uruguay or Argentina
for delivery in May/June 2016, Reuters quoted European Traders
The closing date for the tender is reportedly April 12, 2016.

Brazil Exports 311,565 Tons of Rice in First Three Months of 2016, Up 19%
from Previous Year
Apr 08, 2016

Brazil exported around 311,565 tons of rice in the first three months of 2016, up about 19% from
around 262,471 tons exported during the same period in 2015, according to data released by the
Rice Institute of Rio Grande do Sul (IRGA).
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In March 2016, Brazil exported around 140,814 tons of rice, up about 89% from around 74,701
tons in February 2016 and slightly down from around 142,643 tons exported in March 2015.
Venezuela remained the largest importer of Brazilian rice in March 2016 with around 59,990
tons, or about 43% of Brazil's total rice exports during the month. Cuba accounted for around
44,778 tons (about 32% of Brazil's total rice exports during the month); and Senegal accounted
for around 8,415 tons (about 6% of Brazil's total rice exports during the month).
U.S. (2,418 tons), Peru (614 tons), Switzerland (147 tons), Bolivia (4,125 tons), Belgium (3,073
tons), Angola (1,765 tons), Holland (1,523 tons), Chile (610 tons), Saudi Arabia (1,835 tons),
Gambia (735 tons), Cape Verde (1,180 tons), Costa Rica (625 tons) and others (8,981 tons)
accounted for remaining 19% of the exports during the month.

Third Rice Crop May Lead to Increased Drought and Salinity in Vietnam,
Warn Experts
Apr 08, 2016

Experts have criticized the Vietnamese government's plan to expand the acreage of 2016
autumn-winter rice crop, or third rice crop, in the Mekong Delta as it could lead to higher
drought and salinity in the region in the coming years, according to Vietnam Breaking News.
The Department of Cultivation, the Ministry of Agriculture and Rural Development, is planning
to increase the third rice crop area in the Delta to around 900,300 hectares from around 843,140
hectares last year. Planting for the third rice crop will begin in July or early August. The
Department is expecting the output from the crop to increase about 8% to around 4.9 million tons
from around 4.54 million tons last year.
Experts say that the decision would worsen drought and salinity in the coming years because the
construction of closed dikes to retain water for the third crop is likely to severely impact the
storage capacity in the Mekong Delta during the flooding season. They say that the three natural
reservoirs on the Mekong river - the Tonle Sap Lake in Cambodia and Vietnams Dong Thap
Muoi (the Plain of Reeds) and Long Xuyen Quadrangle - regulate water flows of the river, store
water to ease floods in the wet season and release water into the Tien and Hau rivers to help
reduce salinity in coastal areas during the dry season.
However, they say too much construction of dikes during the third rice crops in the previous
years has severely impacted water storage in the Dong Thap Muoi and Long Xuyen Quadrangle
reservoirs. As a result, more floodong is likely to hit the areas outside the dikes in the flooding
season, while drought and saltwater intrusion are likely to worsen in the dry season, they add.
Therefore, experts have suggested that relevant agencies should find ways to slove the drought
and salinity problems caused by the third crop in the previous years rather than planning to
increase the third crop acreage.

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They reiterated that around 180,000 tons of paddy of the 2015-16 winter-spring crop has been
damaged by drought and salinity.
Separately, the Director of the Rice Research Institute noted that the authorities are planning to
restore the loss from the winter-spring crop by increasing the acreage of the autumn-winter crop
so as to ensure that exports are not impacted.

Oryza Weekly: Bulls Hope New Demand from Philippines Lifts Rice Prices
Apr 09, 2016

The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes,
ended the week at about $384 per ton, down about $2 per ton from a week ago, down about $3
per ton from a month ago and down about $28 per ton from a year ago.
In its April 2016 Grain Market Report, the International Grains Council forecasts 2016-17 global
rice production at around 485 million tons, an increase of about 2.5% from the previous year,
due to improved Asian production. The IGC forecasts 2016-17 global rice trade at around 42
million tons, unchanged from last year, and it forecasts 2016-17 global rice consumption to
increase about 1% from last year. The IGC forecasts global rice ending stocks at around 93
million tons in 2016-17, about 4% less than last year due to higher food use in most countries.

Daily Exclusive ORYZA Rice E-Newsletter

Markets were risk friendly today but analysts project gloom and doom further out. Gold prices
increased today on a weaker U.S. dollar. Crude oil prices surged, resulting in huge losses for
investors shorting the market. U.S. stocks closed slightly higher but posted the worst weekly
loss since February. Some analysts say there are signs of pending market trouble ahead and that
things have topped out for now: investors are the most bullish since June; emergying market debt
saw the largest weekly inflow since 2014; investors are buying junk bonds and selling safe haven
assets; and earnings have declined for the third straigh quarter.
Thailand
Thailand 5% broken rice is today quoted at about $375 per ton, up about $5 per ton from a week
ago, up about $10 per ton from a month ago and down about $15 per ton from a year ago.
The government has shortlisted bids from fourteen companies for about 418,000 tons of foodgrade rice and bids from six companies for about 98,723 tons of industrial-grade rice in the
second auction of this year.
The Agriculture Ministry anticipates the water crisis resulting from drought to ease over the next
few months as water levels in the countrys dams would be sufficient until seasonal rains begin
in April and May.
India
India 5% broken rice is today quoted at about $375 per ton, unchanged from a week ago, up
about $5 per ton from a month ago, and down about $5 per ton from a year ago.
A report by a private Indian research agency forecasts the revival of the countrys basmati rice
sector in the second half of FY 2016-17.
Wholesale basmati rice prices in the national capital increased Tuesday, owing to increased
buying for stockpiling against restricted supplies from producing regions.
A long-range weather forecast by a private Indian climate management company predicts that
monsoon this year may be 5-10% above normal and well-distributed across the country, after
two consecutive years of drought.
Drought in India's southern states is likely to impact output from the 2015-16 rabi rice crop
(November - May), say experts.
Vietnam
Vietnam 5% broken rice is today quoted at about $370 per ton, down about $10 per ton from a
week ago, down about $5 per ton from a month ago and up about $5 per ton from a year ago.

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During the first three months of 2016, Vietnam exported 1.426 million tons of rice, up about
58% from during the same period last year. The average rice export price so far this year is
around $405 per ton (FOB), about 7% less than the same time last year.
During the period March 15 April 2, rice exporters shipped about 64,000 tons of rice from
Saigon port.
Experts have criticized the Vietnamese government's plan to expand the acreage of 2016
autumn-winter rice crop, or third rice crop, in the Mekong Delta as it could lead to higher
drought and salinity in the region in the coming years, according to Vietnam Breaking News.
Cambodia & Myanmar
Cambodia 5% broken rice is today quoted at about $455 per ton, unchanged from a week ago,
up about $40 per ton from a month ago and up about $15 per ton from a year ago. The
government of Cambodia has removed the current value-added tax (VAT) of 10% on milling
machines as part of effort to support the rice millers,
Myanmar 5% broken rice is today quoted at about $420 per ton, unchanged from a week ago,
down about $5 per ton from a month ago, and up about $5 per ton from a year ago.
Pakistan
Pakistan 5% broken rice is today quoted at about $350 per ton, up about $5 per ton from a week
ago, up about $10 per ton from a month ago and down about $15 per ton from a year ago.
The governments of Pakistan and Iran have agreed to sign a free trade agreement which would
boost bilateral trade between the two countries.
The USDA Post forecasts Pakistan's MY 2015-16 rice exports at around 4.2 million tons, up
about 5% from around 4 million tons last year and down from the USDA's official estimates of
around 4.6 million tons.
Central & South America
Five percent broken rice from Uruguay and Argentina is today quoted at about $430 per ton,
unchanged from a week ago, down about $10 per ton from a month ago and down about $145
per ton from a year ago. The USDA Post forecasts Argentina's total rice exports in MY 2016-17
at 550,000 tons, up about 10% from around 500,000 tons last year.
Brazil exported around 311,565 tons of rice in the first three months of 2016, up about 19%
from around 262,471 tons exported during the same period in 2015.
USDA Post forecasts Dominican Republic's paddy rice production to decline about 6% to
around 806,000 tons (around 540,000 tons, basis milled) in MY 2015-16 (July 2015 - July 2016)

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from around 861,000 tons (around 577,000 tons, basis milled) in the previous year due to an
expected decline in paddy rice acreage.
U.S.
U.S. 4% broken rice is today quoted at about $435 per ton, down about $10 per ton from a week
ago, down about $25 per ton from a month ago and down about $50 per ton from a year ago.
Chicago rough rice futures for May delivery bounced slightly higher this week, reaching the
weekly high of $9.970 per cwt (about $219.80 per ton) on Friday but failing to break the $10.000
per cwt (about $220.46 per ton) threshold this week.
The U.S. cash market was steady this week, firming up slightly later in the week on news that the
U.S. may receive a portion of the Iraqi tender.
Other Markets
The European Commission, the European Parliament, and the EU member states are discussing
plans to regulate the organic farming sector as demand for organic products has been increasing.
The European Commission has postponed the much-awaited legal analysis on whether new plant
breeding techniques should be considered as genetically modified organisms.
The EUs rice imports from Least Developed Countries of Asia, such as Cambodia and
Myanmar, under the Everything But Arms Agreement have reached about 217,174 tons in the
first seven months of crop year 2015-16 (September-March), about 30% more than during the
same period last year.
The USDA Post forecasts the EU MY 2015-16 milled rice production at around 2.055 million
tons, up from around 1.963 million tons and up from the USDA's official estimates of around
2.005 million tons.
The government of Indonesia plans to export about 100,000 tons of rice to ten different
countries, including Malaysia, Singapore, and Brunei Darussalam, this year in efforts to increase
farm commodity exports.
During the period September 1 March 29, Italy exported 67,654 tons of milled rice, about 18%
less than during the same period last year.
South Korea will purchase 408,700 MT of rice (milled basis) under the 2016 tariff rate quota
purchasing plan, according to the USDA Post.
The government of Malaysia plans to introduce crop insurance for paddy farmers in order to
protect them from risks associated with climate change such as drought, diseases, and floods.

Daily Exclusive ORYZA Rice E-Newsletter

The government of the Philippines may import another 500,000 tons of rice this year in addition
to the 750,000 tons imported during the last six months, in efforts to mitigate the impact of El
Nino-induced drought on the food supply.
Chinese customs authorities have tightened inspections on cargo being sent to North Korea, to
ensure consistency in labelling and product being transported.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures
Bounce as Recent Spate of Selling Subsides; Wheat Continues to Slip as Crop
Conditions Seen Better than Expected
Apr 09, 2016

hicago rough rice futures for May delivery settled 10.5 cents were cwt (about $2 per ton) higher
at $9.850 per cwt (about $217 per ton). The other grains finished the day mostly lower; Soybeans
closed about 0.4% lower at $9.0450 per bushel; wheat finished about 1.1% lower at $4.5775 per
bushel, and corn finished the day about 1% higher at $3.6150 per bushel.
U.S. stocks traded mostly higher Friday, amid a rally in oil prices, as the yen held near highs not
seen against the U.S. dollar since October 2014. The major averages came well off session highs
in late-morning trade as the yen temporarily reversed earlier weakness to trade stronger against
the dollar. Oil also briefly trimmed earlier gains. The Japanese yen traded little changed from
highs seen earlier this week, trading near 108.4 against the U.S. dollar as of 1:03 p.m. ET. The
yen recently hit fresh highs against the greenback going back to October 2014, putting pressure
on stocks. Traders also noted some pressure on stocks after several downward revisions to firstquarter GDP estimates following wholesale inventories' 0.5% decline in February, the sharpest
decline since May 2013, Reuters reported.
The Atlanta Fed's GDPNow model said the U.S. economy was on track to grow 0.1% in the first
quarter, down from the previous 0.4% estimate. WTI held gains, surging more than 5% to near
$39.30 a barrel in afternoon trade, after the oil rig count fell by 8, hitting its lowest level since
2009. U.S. crude oil futures are on pace for a weekly gain of more than 7.5%.European stocks
closed up about 1% or more, with bank stocks outperforming. Asian stocks were mixed, with the
Nikkei 225 and Hang Seng closing about half a percent higher while the Shanghai composite
declined about 0.8%.In afternoon trade, the Dow Jones industrial average traded up 51 points, or
0.29%, to 17,593. The S&P 500 traded up 6 points, or 0.29%, to 2,047, with energy leading
seven sectors higher with consumer discretionary leading decliners. The Nasdaq composite
declined 1 point, or 0.03%, to 4,846. Gold is seen trading about 0.4% higher, crude oil is seen
trading about 5.4% higher, and the U.S. dollar is seen trading about 0.2% lower at about 1:00pm
Chicago time.
Thursday, there were 378 contracts traded, down up 560 contracts traded on Wednesday. Open
interest the number of contracts outstanding on Thursday increased by 80 contracts to
13,191.
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Daily Exclusive ORYZA Rice E-Newsletter

Lack of Summer Rains May Impact Rabi Rice Output in South India, Say
Experts
Apr 08, 2016
Drought in India's southern states is likely to impact output from the 2015-16 rabi rice crop (November May), the Economic Times quotes some experts.

Experts noted that the effect of drought has been severe in the states of Andhra Pradesh and
Telangana. The Principal Scientist of Acharya N G Ranga University noted that lack of water in
the Nagarjuna Sagar dam has been hindering irrigation activities in the two states.
An owner of a private farm in Karnataka noted that sowing for rabi rice crop in the state has not
at started, though the kharif rice crop was good.
Local sources say untimely rains in last November and December and the present dry conditions
in Tamil Nadu are severely affecting the rice and cotton crops.
The Secretary General of the Consortium of Indian Farmers' Association noted that only 60% of
the total 140 million hectares of cultivated area is rain fed and the remaining depends on
irrigation. He adds that the government should speed up the completion of nearly 400 incomplete
irrigation projects across the country to help farmers avoid water crises in the cropping seasons.
The government of India forecasts India's 2015-16 (July - June) milled rice output to decline
about 2% to around 103.61 million tons from around 105.48 million tons in 2014-15. While it
forecasts the output from the kharif rice crop to decline about 1% y/y to around 90.59 million
tons, it forecasts output from the rabi rice crop to decline about 7.5% y/y to around 13.02 million
tons.

Lack of Summer Rains May Impact Rabi Rice Output in South India, Say
Experts
Apr 08, 2016

Drought in India's southern states is likely to impact output from the 2015-16 rabi rice crop
(November - May), the Economic Times quotes some experts.
Experts noted that the effect of drought has been severe in the states of Andhra Pradesh and
Telangana. The Principal Scientist of Acharya N G Ranga University noted that lack of water in
the Nagarjuna Sagar dam has been hindering irrigation activities in the two states.
An owner of a private farm in Karnataka noted that sowing for rabi rice crop in the state has not
at started, though the kharif rice crop was good.
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Daily Exclusive ORYZA Rice E-Newsletter

Local sources say untimely rains in last November and December and the present dry conditions
in Tamil Nadu are severely affecting the rice and cotton crops.
The Secretary General of the Consortium of Indian Farmers' Association noted that only 60% of
the total 140 million hectares of cultivated area is rain fed and the remaining depends on
irrigation. He adds that the government should speed up the completion of nearly 400 incomplete
irrigation projects across the country to help farmers avoid water crises in the cropping seasons.
The government of India forecasts India's 2015-16 (July - June) milled rice output to decline
about 2% to around 103.61 million tons from around 105.48 million tons in 2014-15. While it
forecasts the output from the kharif rice crop to decline about 1% y/y to around 90.59 million
tons, it forecasts output from the rabi rice crop to decline about 7.5% y/y to around 13.02 million
tons.

Oryza U.S. Rough Rice Recap - Prices Continue to Rally ahead of Iraqi
Tender
Apr 09, 2016

The U.S. cash market was firmer again today with offers and bids increasing ahead of the
deadline for Iraqi tenders offers to be submitted.
Despite the U.S. likely being the most expensive origin offered on the tender some are hopeful
that the U.S. government will put pressure on the IGB to purchase U.S. rice especially given the
fact that Secretary of State John Kerry was in Baghdad today.
Analysts note that without fresh demand from Iraq, Venezuela, or Colombia prices will continue
their slide lower.

USDA Post Forecasts Pakistan MY 2015-16 Rice Exports at 4.2 Million Tons;
Up 5% from Previous Year
Apr 08, 2016

The USDA Post forecasts Pakistan's MY 2015-16 rice exports at around 4.2 million tons, up
about 5% from around 4 million tons last year and down from the USDA's official estimates of
around 4.6 million tons. It forecasts exports in MY 2016-17 to remain stable at 4.2 million tons.
The Post reports that though Pakistans rice exports are increasing gradually, much of the
increase is in non-Basmati varieties as India continues to offer stiff competition in Basmati
exports.
Based on the government figures, the Post forecasts Pakistan's MY 2015-16 milled rice
production at around 6.79 million tons, down from around 6.9 million tons in the previous year
and down from USDA's official estimates of around 6.9 million tons. It forecasts production to
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increase to 6.9 million tons in MY 2016-17 due to an expected increase in the area.

The Post forecasts Pakistan's MY 2015-16 rice area at around 2.74 million hectares, down from
2.85 million hectares last year and down from USDA's official estimates of 2.85 million
hectares. It, however, forecasts area to increase to 2.8 million hectares in MY 2016-17 because
some cotton farmers are likely to shift to rice due to the losses they incurred during the last crop.
The USDA Post forecasts Pakistan's MY 2015-16 rice consumption to increase to 2.9 million
tons from last year's 2.8 million tons and further increase to 2.95 million tons in MY 2016-17.
The Post reports that around 200,000 tons of rice were used for poultry and animal feed in
December 2015 due to a decline in prices.
The Post forecasts Pakistan's MY 2015-16 rice stocks to decline to 1.1 million tons from last
year's 1.5 million tons and further decline to 850,000 tons in MY 2016-17. It reports that
Pakistans stock levels reached a historic high of 1.5 million metric tons in MY 2014-15 and rice
millers were concerned about the large stocks at their mills, but the stock level is gradually
coming down, as exports are increasing.

USDA Post Forecasts Argentina MY 2016-17 Rice Exports to Increase 10%

y/y to 550,000 Tons

Apr 08, 2016

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The USDA Post forecasts Argentina's total rice exports in MY 2016-17 at 550,000 tons, up about
10% from around 500,000 tons last year. Exports reportedly slowed down in 2014-15 as Brazil
shifted to Paraguay and Uruguay. However, local traders believe that in the last part of 2016
Brazil will speed up purchases as it is expected to have a small stock primarily due to a drop in
production, says the Post.
Argentina primarily exports rice to Iraq, Colombia, Brazil and Mexico.
The Post reports that there is a great uncertainty in the local market due to large stocks from
2014-15 season and low exports. The elimination of export taxes (5% for rough rice and 10% for
milled rice) and the strong devaluation have improved somewhat the situation, but many
producers are not able to take advantage of the new policies, says the Post.
The USDA Post forecasts Argentina's MY 2016-17 (April 2016 - March 2017) paddy rice
acreage and production to remain unchanged at last year's level of around 208,000 hectares and
1.338 million tons respectively.
The Post forecasts Argentina's 2016-17 rice consumption to be stable at around 460,000 tons.

Government of Cambodia Removes Value Added Tax on Milling Machines

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Daily Exclusive ORYZA Rice E-Newsletter

Apr 08, 2016

The government of Cambodia has removed the current value-added tax (VAT) of 10% on
milling machines as part of effort to support the rice millers, the Phnompenh Post quoted a
government circular.
According to the circular, the removal of VAT on the milling machines would come into effect
immediately. It also noted that the VAT removal would make rice production more pricecompetitive. All agricultural products have been granted an exemption from the VAT, according
to the circular.
The government announced some measures, including the VAT removal on milling machines
and curbing rice imports from neighboring countries, on March 31, 2016 following an
emergency meeting of the members of the Cambodia Rice Federation (CRF) and the involved
stakeholders with the Deputy Prime Minister.
Last week, one of the leading exporters told reporters that the decision to remove the 10% VAT
will benefit local millers so that they can compete with their foreign counterparts.

India Rice Sellers Increase Some of their Quotes Today; Other Asia Rice
Quotes Unchanged

Apr 08, 2016

India rice sellers increased their quotes for 100% broken rice by about $5 per ton to around
$275-$385 per ton today. Other Asia rice sellers kept their quotes unchanged.
5% Broken Rice
Thailand 5% rice is indicated at around $370 - $380 per ton, about $5 per ton premium on
Vietnam 5% rice shown at around $365 - $376 per ton. India 5% rice is indicated at around $370
- $380 per ton, about $25 per ton premium on Pakistan 5% rice shown at around $345 - $355 per
ton.
25% Broken Rice
Thailand 25% rice is indicated at around $355 - $365 per ton, on par with Vietnam 25% rice
shown at around $355- $65 per ton. India 25% rice is indicated at around $335- $345 per ton,
about $25 per ton premium on Pakistan 25% rice shown at around $310 - $320 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice is
indicated at around $345 - $355 per ton, about $60 per ton discount to Pakistan parboiled rice
last shown at around $405 - $415 per ton.
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100% Broken Rice
Thailand broken rice, A1 Super is indicated at around $330 - $340 per ton, about $10 per ton
discount to Vietnam 100% broken rice shown at around $340 - $350 per ton. India's 100%
broken rice is shown at around $275 - $285 per ton, about $10 per ton discount to Pakistan
broken sortexed rice shown at around $285 - $295 per ton.

Global Rice Quotes

April 8th, 2016
Long grain white rice - high quality
Thailand 100% B grade 380-390

Vietnam 5% broken

365-375

India 5% broken

370-380

Pakistan 5% broken

345-355

Myanmar 5% broken

415-425

Cambodia 5% broken

450-460

U.S. 4% broken

430-440

Uruguay 5% broken

435-445

Argentina 5% broken

425-435

Long grain white rice - low quality

Thailand 25% broken

355-365

Vietnam 25% broken

355-365

Pakistan 25% broken

310-320

Cambodia 25% broken 430-440

India 25% broken

335-345

U.S. 15% broken (sacked)

470-480

370-380

Long grain parboiled rice

Thailand parboiled 100% stxd

Pakistan parboiled 5% broken stxd

NQ

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India parboiled 5% broken stxd 345-355

U.S. parboiled 4% broken

480-490

Brazil parboiled 5% broken

490-510

Uruguay parboiled 5% broken NQ

Long grain fragrant rice

Thailand Hommali 92%
Vietnam Jasmine

665-675
460-470

India basmati 2% broken

NQ

Pakistan basmati 2% broken

NQ

Cambodia Phka Mails 760-770

Brokens
330-340

Vietnam 100% broken 340-350

Thailand A1 Super

Pakistan 100% broken stxd

Cambodia A1 Super

285-295

345-355

India 100% broken stxd

275-285

Egypt medium grain brokens

NQ

U.S. pet food

315-325

Brazil half grain

NQ

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

USDA Post Forecasts EU MY 2015-16 Milled Rice Production at 2.055 Million

Tons; Up 5% from Previous Year
Apr 08, 2016

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The USDA Post forecasts the EU MY 2015-16 milled rice production at around 2.055 million
tons, up from around 1.963 million tons and up from the USDA's official estimates of around
2.005 million tons. Italy and Spain are the top rice producers in the EU.
The Post forecasts Italy's MY 2015-16 rice production to increase 7.5% y/y to around 1.5 million
tons, including 820,000 tons of Long-A, 250,000 tons of Long-B and 400,000 tons of round
paddy, due to increased area and yields. The Post reports that the long grain Indica planted area
is in declining due to increasing competition from rice imports from Cambodia, Myanmar,
Guyana, and Surinam which enjoy duty-free market access under 'Everything But Arms' (EBA)
agreements. However, this decline is likely to be offset by the increased area for the long grain
Japonica variety.
The USDA Post reports that Spain's rice production has remained stable for some years but area
has been declining.
The Post forecasts the EU MY 2015-16 rice imports to decline to around 3.6% y/y to around
1.65 million tons and exports to increase about 2.6% y/y to around 280,000 tons.

USDA Post Forecasts Dominican Republic's MY 2015-16 Paddy Rice

Production at 806,000 Tons, Down 6% from Previous Year

Apr 08, 2016

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USDA Post forecasts Dominican Republic's paddy rice production to decline about 6% to around
806,000 tons (around 540,000 tons, basis milled) in MY 2015-16 (July 2015 - July 2016) from
around 861,000 tons (around 577,000 tons, basis milled) in the previous year due to an expected
decline in paddy rice acreage. The Post forecasts MY 2016-16 production to decline to 791,000
tons due to reduced availability of irrigated production area and the continued high level of
stocks managed by the government.
The Post forecasts the country's paddy rice acreage at around 150,000 hectares, down about 12%
from around 170,000 hectares last year. Rice is grown in two cycles in the country with 75%
crop grown in the main season and 25% crop grown in the secondary season. It forecasts the
paddy acreage to further decline to around 140,000 tons in MY 2016-17.
The average yield has been varying between 4 and 5 tons per hectare over the last ten years. The
Post expects no change in yields due to lack of improvements in irrigation facilities and
production technologies as well as lack of development of new varieties.
The Post estimates the country's milled rice consumption to remain stable at around 560,000 tons
in MY 2015-16 and MY 2016-17.
USDA Post reports that both imports and exports by the Dominican Republic are limited as the
country has been self-sufficient in rice production for the last several years. The Post forecasts
the country's imports in MY 2015-16 at 17,000 tons, down from last year's 19,000 tons, and
further decline to 15,000 tons in MY 2016-17. It forecasts the country's exports in MY 2015-16
at 16,000 tons, down from last year's 18,000 tons, and further decline to 12,000 tons in MY
2016-17.
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Dominican Republic has placed rice in Basket V of the Dominican Republic-Central America
FTA (CAFTA-DR) and agreed for a tariff-reduction period of 20 years as well as establishing a
99% out-of-quota tariff rate. The out-of-quota tariff rate will remain unchanged during the first
10 years of the Agreement, until 2015. From 2016 to 2020 the out-of-quota tariff rate will be
reduced by 8% annually, and from years 2021 to 2025 by 12% annually. The country also
negotiated a special safeguard with an additional tariff rate, which can be applied until the end
of the tariff reduction period.
The Post forecasts Dominican Republic's MY 2015-16 stocks to decline to around 205,000 tons,
down about 8% from last year. It expects stocks to further decline to 178,000 tons in MY 201617.

China Tightens Inspections of North Korea-Bound Rice Cargos

Apr 08, 2016

Chinese customs authorities have tightened inspections on cargo being sent to North Korea,
reports KBS World Radio citing Radio Free Asia (RFA).
A China-based trader told reporters that the authorities have tightened inspections to curb
transport of "apple rice" to North Korea. He noted that "apple rice" is Chinese rice packed in
apple boxes instead of sacks. The term is used a jargon among traders to refer to boxes whose
labels are inconsistent with the actual product inside the box.
He also noted that the authorities usually do not monitor all goods being sent to North Korea, but
now they are randomly checking items to check if the inventory matches the actual cargo. It is
now almost impossible to send "apple rice" to North Korea, he adds.

Oryza U.S. Rough Rice Recap - Prices Continue to Rally ahead of Iraqi
Tender
Apr 09, 2016

The U.S. cash market was firmer again today with offers and bids increasing ahead of the
deadline for Iraqi tenders offers to be submitted.
Despite the U.S. likely being the most expensive origin offered on the tender some are hopeful
that the U.S. government will put pressure on the IGB to purchase U.S. rice especially given the
fact that Secretary of State John Kerry was in Baghdad today.Analysts note that without fresh
demand from Iraq, Venezuela, or Colombia prices will continue their slide lower.
Exclusive News have been shared with written permission of ORYZA.com with thanks

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