Issue Date: 16/09/2011

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Report Date: 16/09/2011

Introduction
Welcome to the new Live Rice Index Report produced by Jackson Son & Co (London) Ltd. This report will be published weekly and will include market commentary and our weekly price assessments. We are also developing a new website that will be available soon. We expect it to become a valuable resource for up to date information and historical data, catering to all sectors of the industry from farmers to the point of sale. All our price assessments will be determined in line with the LRI Methodology with particular attention to those that we have chosen to be benchmarks, marked with this symbol: B For more information on our benchmarks and assessment principles please refer to our methodology statement available on our new web site: www.livericeindex.com

We want to encourage you to take an active role in the price assessment process and help us to ensure that the price assessments become increasingly accurate and robust. Have your say. Dont be left out. You can call us or email us with the information that you would like us to take into account. We will continue to develop our list of price assessments and our methodology, listening carefully to the participants in the rice industry in order to keep them relevant to the international rice market. Updates will be published in our report and on our website. We hope that this will become a useful and reliable resource for the industry.

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Live Rice Index

THAILAND - LONG GRAIN WHITE RICE
100% Grade B 5% Broken 10% Broken
B B

Report Date: 16/09/2011

CHANGE -35 -35 -35 -35 -30 0 CHANGE -45 -45 -45 -45 CHANGE 10 0 -25 CHANGE -10 0 -10 CHANGE 0 0 0 0 0 CHANGE 0 -

PRICE $585 $565 $560 $555 $535 $495 PRICE $600 $590 $595 $585 PRICE $1,080 n/a $540 $915 PRICE $925 $1,125 $795 PRICE $550 $545 $535 $520 $455 PRICE $690 n/a

PAKISTAN - LONG GRAIN WHITE RICE

IRRI-6 5% Broken IRRI-6 10% Broken IRRI-6 15% Broken IRRI-6 25% Broken 386 2% Broken Broken Rice
B

CHANGE -20 -20 -20 -10 -10 CHANGE -31 -43 CHANGE 0 0 CHANGE CHANGE CHANGE 0 0 0 0 0 0 0 0

PRICE $490 $485 $475 $440 n/a $425 PRICE $510 $490 n/a PRICE n/a n/a $1,030 $1,045 PRICE $485 $435 n/a n/a n/a PRICE $495 n/a PRICE $1,145 $1,015 $1,015 $1,015 $965 $975 $1,210 $1,035

U.S.A. - GULF LONG GRAIN RICE

U.S. #2, 4% Broken, Hard Milled U.S. #3, 15% Broken, Hard Milled U.S. #5, 20% Broken, Hard Milled U.S. #1, Parboiled Milled 4% Broken U.S. #2, Paddy, 55/70 Yield (ex-spout) Southern Flour Quality Broken Rice Southern Pet Food Quality Broken Rice

CHANGE 11 11 11 0 10 0 10 CHANGE 0 0 CHANGE -15 -15 0 0 CHANGE 0 0 CHANGE -10

PRICE $660 $633 $600 $710 $375 $375 $340 PRICE $790 $500 PRICE $570 $570 $600 $460 PRICE $630 $605 PRICE n/a n/a n/a n/a $440

15% Broken 25% Broken A1 Super Broken

THAILAND - LONG GRAIN PARBOILED RICE

Parboiled Milled Rice 100% STX Parboiled Milled Rice 100% Parboiled Milled Rice 5% STX Parboiled Milled Rice 5%
B

PAKISTAN - LONG GRAIN PARBOILED RICE

IRRI-6 Parboiled Milled Rice 5% Broken STX IRRI-6 Parboiled Milled Rice 15% Broken STX IRRI-9 Parboiled Milled Rice 5% Broken

U.S.A - CALIFORNIAN MEDIUM GRAIN RICE

U.S. #1, 4% Broken U.S. #1 Paddy, 58/69 Yield

PAKISTAN - BASMATI RICE

THAILAND - LONG GRAIN FRAGRANT RICE

Hom Mali White Rice 100% Grade B New Hom Mali White Rice 100% Grade B Old Hom Mali White Rice A1 Super Pathumthani Fragrant 100% Grade B
B

385 Long Grain White Basmati Rice 2% D-98 Long Grain White Basmati Rice 2% Super Kernel White Basmati Rice 2% Super Kernel Parboiled Milled Basmati Rice 2%

S. AMERICA - LONG GRAIN WHITE RICE (FOB FCL)

Uruguayan 5% Broken Argentine 5% Broken Brazilian 5% Broken Brazilian Broken Rice (1/2 Grain Brokens)

INDIA - LONG GRAIN WHITE RICE

IR 64 5% Broken IR 64 25% Broken PR 106 5% Broken PR 106 25% Broken 1001 / PANT 4 25% Broken

THAILAND - LONG GRAIN GLUTINOUS RICE

White Glutinous Rice 10% Broken White Glutinous Rice 10% Broken (Sanpathong) White Glutinous Broken Rice A1 5% Broken 10% Broken 15% Broken 25% Broken Broken Rice

S. AMERICA - LONG GRAIN PARBOILED RICE (FOB FCL)

Brazilian Parboiled Milled Rice 5% Broken STX Uruguayan Parboiled Milled Rice 5% Broken STX

VIETNAM - LONG GRAIN WHITE RICE

B

INDIA - LONG GRAIN PARBOILED RICE

IR 64 Parboiled Milled Rice 5% STX PR 106 Parboiled Milled Rice 5% STX

EGYPT - WHITE RICE

INDIA - BASMATI RICE

VIETNAM - LONG GRAIN FRAGRANT RICE

Fragrant Rice 5% Broken New Fragrant Rice 5% Broken Old

Traditional White Basmati Rice 2% Traditional Brown Basmati Rice 2% Traditional Parboiled Milled Basmati Rice 2% Pusa White Basmati Rice 2% Pusa Brown Basmati Rice 2% Pusa Parboiled Milled Basmati Rice 2% 1121 White Basmati Rice 2% 1121 Parboiled Milled Basmati Rice 2%

Medium Grain #2 6% Broken Medium Grain #3 12% Broken Round Grain #2 6% Broken Round Grain #3 12% Broken Broken Rice Grade 0

= INDICATES BENCHMARK

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Thailand
The decision by India to resume nonbasmati exports sent shockwaves through the Thai market. Trading became very thin and the number of enquiries in the Thai market dropped considerably, particularly for parboiled and white rice. Thai prices had dropped US $10 - $20 by the time the market re-opened on Monday and Thai 100% B reached lows of US $580 PMT during the week. White rice prices have now recovered slightly with 100% B offered at US $585 PMT basis FOB and parboiled 100% sortexed quality offered at US $600 PMT. The price for parboiled 100% fell around US $35 within a week as India secured large contracts for parboiled exports to African destinations. Thai Exporters are facing difficulties in covering their outstanding contracts due to the tight supplies in the domestic market. In particular, parboilers are finding it extremely difficult to secure the raw material that they require as farmers and millers continue to withhold large supplies of current crop paddy rice in anticipation for the Paddy Pledging Program. From October 7th, the program is set to offer farmers Baht 15,000 PMT for regular long grain paddy, which is a 55% improvement on the domestic prices for August. The price for Hom Mali paddy has been set at Baht 20,000 PMT and at least 50% of farmers have already signed up for the rice mortgage scheme. The Government has announced their plans to sell 120,000 MTS of the 2 million MTS of rice in state stock piles. The 120,000 MTS of rice will be handed out to flood victims in the northern regions of Thailand free of charge. The Government will consider all of their options for selling the balance of rice either through auctions for exporters, offering the grain on the futures exchange market and government-to-government business but is expected to begin selling the stocks gradually from the end of September onwards. Pricing in the fragrant market have been increasing as demand for Hom Mali, Pathum Thani remains stable and there have been some reported losses of Pathum Thani due to floods. Glutinous prices are firm and new crop prices have increased slightly; Sanpathong quality glutinous rice, 10%, is now priced at

Report Date: 16/09/2011

THAILAND - LONG GRAIN WHITE RICE

100% Grade B 5% Broken 10% Broken
B B

CHANGE -35 -35 -35 -35 -30 0 CHANGE -45 -45 -45 -45 CHANGE 10 0 -25 CHANGE -10 0 -10

PRICE $585 $565 $560 $555 $535 $495 PRICE $600 $590 $595 $585 PRICE $1,080 n/a $540 $915 PRICE $925 $1,125 $795

15% Broken 25% Broken A1 Super Broken

THAILAND - LONG GRAIN PARBOILED RICE

Parboiled Milled Rice 100% STX Parboiled Milled Rice 100% Parboiled Milled Rice 5% STX Parboiled Milled Rice 5%
B

THAILAND - LONG GRAIN FRAGRANT RICE

Hom Mali White Rice 100% Grade B New Hom Mali White Rice 100% Grade B Old Hom Mali White Rice A1 Super Pathumthani Fragrant 100% Grade B
B

THAILAND - LONG GRAIN GLUTINOUS RICE

White Glutinous Rice 10% Broken White Glutinous Rice 10% Broken (Sanpathong) White Glutinous Broken Rice A1

Export Statistics:
Unofficial Thai rice exports from the 29th of August to the 4th of September 2011 were 148,132 MTS, excluding fragrant rice. This represents a decrease of 8,579 MTS from the previous week. Exports of white and glutinous rice from 1st of January to the 4th of September 2011 totalled 6,651,171 MTS. This is an increase of 70.1% from the same period last year. Source: Thai Rice Exporters.

CURRENCY 1 USD $ INVERSE

THB 30.39 0.033

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Vietnam
The market in Vietnam has remained stable amid the excitement of India resuming non-basmati exports. 5% white rice is still offered at around US $550 PMT because, as we have said before, the fundamentals of this market remain strong. Vietnam is expected to export 7 million MTS this year and supplies of rice are relatively thin. The crop due to be harvested in October will coincide with the start of the Thai rice pledging policy and many expect increased volumes of Vietnamese and Cambodian paddy rice to find its way across the border into Thailand. Vietnams 2011 output is set to reach 42 million MTS, an increase of 2 million MTS from 2010. Flooding in the central part of the country has threatened to hinder the yield of the current crop, with some reports suggesting that up to 70,000 hectares of rice may be damaged. This comes after approximately 500 millimetres of rain fell on the Nghe An and Ha Tinh provinces between September 8th and 12th. The release of floodwaters on September 15th from the La and Tra Su reservoirs has increased water levels, exacerbating worries.

Pakistan
Pakistan has experienced monsoon flooding in Lower Sindh over the past fortnight which which is likely to delay part of the rice harvest until October and slow arrivals into Karachi. Other crops being grown within the region have suffered extensive losses (such as cotton and chillies) but damage to the rice crop is somewhat minimal, with the impact on the market set to be nowhere near as severe as the flooding of 2010. The Upper Sindh province remains unaffected by the events, with no flood damage at all to the rice crop and the Punjab region is also completely unaffected. Any losses in Lower Sindh are likely to be offset by strong yields in these other key rice growing areas. As the harvest gains momentum, there is likely to be a high interest from parts of Africa and the Middle East, with the Pakistani rice exporters set to benefit from the Thai governments implementation of its rice mortgage policy. The country remains on course to produce up to 6.8 million MTS of rice in 2011, with export prices remaining some of the cheapest globally. Parboiled is presently being offered at US $510 PMT, with IRRI-6 5% white rice offered at US $490 PMT basis FOB Karachi. The market is set to continue firming up.
IRRI-6 5% Broken IRRI-6 10% Broken IRRI-6 15% Broken IRRI-6 25% Broken 386 2% Broken Broken Rice

Report Date: 16/09/2011

PAKISTAN - LONG GRAIN WHITE RICE

B

CHANGE -20 -20 -20 -10 -10 CHANGE -31 -43 CHANGE 0 0

PRICE $490 $485 $475 $440 n/a $425 PRICE $510 $490 n/a PRICE n/a n/a $1,030 $1,045

Export Statistics:
From the 1st of January to the 8th of September 2011, Vietnam shipped 5.445 million MTS. Shipments from the 1st of September to the 8th of September 2011 reached 127,528 MTS. Source: VFA

PAKISTAN - LONG GRAIN PARBOILED RICE

IRRI-6 Parboiled Milled Rice 5% Broken STX IRRI-6 Parboiled Milled Rice 15% Broken STX IRRI-9 Parboiled Milled Rice 5% Broken

PAKISTAN - BASMATI RICE

CURRENCY 1 USD $ INVERSE

VND 20,800.00 0.000048

385 Long Grain White Basmati Rice 2% D-98 Long Grain White Basmati Rice 2% Super Kernel White Basmati Rice 2% Super Kernel Parboiled Milled Basmati Rice 2%

CURRENCY 1 USD $ INVERSE

PKR 87.79 0.0114

VIETNAM - LONG GRAIN WHITE RICE

5% Broken 10% Broken 15% Broken 25% Broken Broken Rice
B

CHANGE 0 0 0 0 0 CHANGE 0 -

PRICE $550 $545 $535 $520 $455 PRICE $690 n/a

VIETNAM - LONG GRAIN FRAGRANT RICE

Fragrant Rice 5% Broken New Fragrant Rice 5% Broken Old

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USA
Bids for new crop long grain rice have been increasing in the South this week and the market remains quite firm as the futures market, which recently reached a 2 year high, inflates sellers price expectations. The buyers in the domestic market are responding well to the high prices and demand remains strong but offshore there is a completely different picture being painted. U.S. rice is losing market share in some key markets, including Haiti and Mexico and the news that Iraq will scrap their tender of wheat and buy rice instead will do little to excite the US exporters who remain priced out of this market. US rice production for the 2011/12 season has been forecast at 190.9 million cwt, which is a 2.8 million increase since last months appraisal. Export predictions have decreased however, projected now at 93 million cwt which is 4 million less than the estimates released in August.

Report Date: 16/09/2011

U.S.A. - GULF LONG GRAIN RICE

U.S. #2, 4% Broken, Hard Milled U.S. #3, 15% Broken, Hard Milled U.S. #5, 20% Broken, Hard Milled U.S. #1, Parboiled Milled 4% Broken U.S. #2, Paddy, 55/70 Yield (ex-spout) Southern Flour Quality Broken Rice Southern Pet Food Quality Broken Rice

CHANGE 11 11 11 0 10 0 10 CHANGE 0 0

PRICE $660 $633 $600 $710 $375 $375 $340 PRICE $790 $500

The Californian market has been quiet with only small volumes of old crop being traded. With over 96% of the rice crop in California headed, the harvest isjust beginning to start and should bring some harvest pressure with it. The market is certainly softer already and offers in to the Middle East have been discounted in an effort to seThe harvest is all but complete in Texas and cure further offshore business. The crops in around 86% has been harvested in LouiEgypt, Australia and to a lesser extent Russia siana. Reports of yields remain average in are proving to be bearish factors for this Texas and Louisiana but in the Mid-South, market, which is expecting a bumper crop the initial arrivals have been less promising. itself. The latest round of Korean tenders call 38% and 65% of the rice has been harvested for a combined total of over 50,000 MTS of in Missouri and Mississippi respectively and Australian and Chinese origin rice. the planting was drawn out by the floods that were experienced earlier this year. This late planted rice is expected to produce even less impressive yields, so it might get worse before it gets better for rice farmers in the Mid-South. Generally, medium grain yields in the South are above average.

U.S.A - CALIFORNIAN MEDIUM GRAIN RICE

U.S. #1, 4% Broken U.S. #1 Paddy, 58/69 Yield

Export Statistics:
For the period September 2nd - 8th, Net sales of 33,600 MTS were down from the previous week. Major buyers were: Mexico Taiwan Canada Honduras Jordan 29,400 MTS 1,200 MTS 1,100 MTS 600 MTS 500 MTS.

Exports for the same period reached 30,900 MTS and were mainly to: Mexico South Korea Canada Jordan Israel Source: USDA
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21,700 MTS 4,600 MTS 2,000 MTS 900 MTS 300 MTS

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South America
Brazilian and Uruguayan exports have continued at am impressive pace and news of a new Iraqi tender for 30,000 MTS of South American rice will further buoy the market. Brazil has taken advantage of the Thai market situation and gained a huge share of the broken and parboiled markets in Africa but demand is likely to be a little thinner with Indias return to the parboiled export market. Indeed Brazilian exports in August were down 20% in comparison to July but in spite of some buyers uncertainty, Brazil still managed to export 176,500 MTS in August. This means that the nation has exported an average of 145,000 MTS per month this year, which exceeds most expectations. Brazil has gained significant market share in a number of new markets this year, most recently completing a sale of 16,700 MTS of paddy to Turkey, the first time that Turkey has bought from Brazil. Prices in South America have softened this week, in line with world markets. Uruguayan 5% white rice is now offered at around US $570 PMT and Brazilian 5% white rice is priced at US $600 PMT on an FOB basis. Parboiled prices have softened too, with Brazilian parboiled 5% milled rice priced at US $630 PMT. Many observers are expecting La Nia to cause extreme dryness throughout South America, with the situation predicted to worsen through the year. Most of the

India
CHANGE -15 -15 0 0 CHANGE 0 0 PRICE $570 $570 $600 $460 PRICE $630 $605

Report Date: 16/09/2011

S. AMERICA - LONG GRAIN WHITE RICE (FOB FCL)

Uruguayan 5% Broken Argentine 5% Broken Brazilian 5% Broken Brazilian Broken Rice (1/2 Grain Brokens)

S. AMERICA - LONG GRAIN PARBOILED RICE (FOB FCL)

Brazilian Parboiled Milled Rice 5% Broken STX Uruguayan Parboiled Milled Rice 5% Broken STX

Following the Indian Governments announcement to allow exports of rice under open general licence, there is believed to have been between 500,000 and 600,000 MTS of business concluded, of which it is estimated that 400,000 MTS is for parboiled rice with the balance spread between white rice and brokens. Although exporters have covered some quantities domestically, their main focus seems to have been to capture further export sales but are now turning to the local market to cover these sales. The intense activity has caused the millers to raise their prices to such an extent that now there are reports of widespread defaults on earlier purchases made at significantly lower levels. We should not be surprised that the market is taking a little time to find its level and the confusion is expected. Prices may continue to rise but once this initial feeding frenzy is over we expect the market to find its level and stabilise. There is a pressing demand for rice to shipped quickly to Africa, in order to meet the Christmas trade, and to Bangladesh against contract which one by exporters before the lifting of the ban. Once this window of opportunity is over, demand should settle and prices may well do the same.

INDIA - LONG GRAIN WHITE RICE

IR 64 5% Broken IR 64 25% Broken PR 106 5% Broken PR 106 25% Broken 1001 / PANT 4 25% Broken

CHANGE CHANGE CHANGE 0 0 0 0 0 0 0 0

PRICE $485 $435 n/a n/a n/a PRICE $495 n/a PRICE $1,145 $1,015 $1,015 $1,015 $965 $975 $1,210 $1,035

INDIA - LONG GRAIN PARBOILED RICE

IR 64 Parboiled Milled Rice 5% STX PR 106 Parboiled Milled Rice 5% STX

INDIA - BASMATI RICE

CURRENCY 1 USD $

BRL 1.708

ARS 4.201

UYU 19.2

rice growing areas are well irrigated so it should only be particularly problematic if there is insufficient rain in the region. Currently, the dams are on average, at around 65% of their capacity. Last week the Venezuelan rice federation and the agricultural ministry came together and formed the National Rice Council. They discussed the possibility of bringing the private sector and the public entities together so that they may collaborate in an effort to increase domestic rice production. Currently only 250,000 hectares are planted with rice crop out of an available 2.4 million hectares of agrable land but there are plans to extend this by an additional 50,000 hectares next year.

Traditional White Basmati Rice 2% Traditional Brown Basmati Rice 2% Traditional Parboiled Milled Basmati Rice 2% Pusa White Basmati Rice 2% Pusa Brown Basmati Rice 2% Pusa Parboiled Milled Basmati Rice 2% 1121 White Basmati Rice 2% 1121 Parboiled Milled Basmati Rice 2%

CURRENCY 1 USD $ INVERSE

INR 47.47 0.0211

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The Rest Of The World

The Philippines
The National Food Authority has announced again this year that they will have to reduce the amount of rice it buys annually to 250,000 MTS from 500,000 MTS due to budget constraints. Originally the NFA said that they would be able to buy 870,00 MTS at the beginning of the year. Only 1.5% of the 17 million MTS of rice predicted to be produced by the Philippines this year will be purchased by the NFA.

Report Date: 16/09/2011

Indonesia
Bulog have been given an additional US $116.58 million to buy rice off farmers to increase the rice stockpile by the end of the year. Officials have said that there is a need to import rice from the international market as well as buying rice from domestic farmers to secure stock piles. Bulog announced that to maintain the stability of prices, it would continue to import rice from several countries. However some officials in government have criticised these decisions, saying Bulog is there for imports and to stabilize the rice.

Iraq
On Wednesday, Amer Abdel Aziz from the Grain Board of Iraq announced they had cancelled the tender to buy 50,000 MTS of wheat and have instead issued a tender to buy 30,000 MTS of rice from South America.

Madagascar
The head of the National Rice Producers Federation (NRPF) has announced that the countrys self-sufficiency in rice could be under threat, as the lack of economic resources from the sector mean that the rice harvest may be lost. The head of the NRPF explained that this would be due to fewer sales to retailers, increased production costs and a high inventory leaving this sector with little liquidity to cover the cost of the harvest.

Cambodia
The country has approximately 1000 MTS of fragrant rice in stock for export which will be dealt between the end of the month and November. The market in the country remains firm, with the demand of Eastern Europe and Russia still constant. The Indian decision on exports does not seem to have had much of an effect on Cambodia thus far, however it may be influenced in the long-term. Some farmers are keeping paddy for selling as seed which is having an impact upon prices.

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Report Date: 16/09/2011

Offering A Grain Of Truth...

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