7th July (Tuesday), 2015 Daily Exclusive ORYZA E-Rice Newsletter by Riceplus Magazine

July 7 ,2015
Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine |

www.ricepluss.com & www.riceplus.blogspot.com
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Cambodia Rice Exports Increase Sharply in

First Half of 2015 Driven by Chinese,
European Demand
Jul 06, 2015
Cambodia has exported around 283,825 tons of milled rice in the first six months of 2015, up
about 60% from around 177,928 tons exported during the same period last year, Phnom Penh
Post quoted data from the Secretariat of One Window Service for Rice Export Formality.While
white rice accounted for around 47% of total rice exports in the six month period, fragrant rice
accounted from 44.5% and parboiled rice accounted for the remaining 8%. About 72 companies
have exported rice to 51 countries so far this year according to official data.
2


Increased demand from China and the European Union are said to be driving this year's rice
exports. Cambodia exported around 72,000 tons of rice to China so far this year, about 9 times
more than 7,731 tons exported during the same period last year. It exported around 175,959 tons
and around 177,928 tons of rice to China in 2013 and 2014 respectively. A Memorandum of
Understanding (MoU) to export around 100,000 tons of rice to China expired in May this year
and Cambodia hopes to strike a new deal to export around 200,000 tons of rice to China this
year.
Meanwhile, the EU nations France, Poland and the Netherlands remained the top three importers
of Cambodian rice in 2015 with 36,233 tons, 32,268 tons and 18,179 tons respectively. 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.
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.
OECD-FAO Report Estimates Global Rice

Trade to Increase 9% in 2015-2024
Jul 06, 2015
A report titled 'Agricultural Outlook 2015-2024' by the Organization for Economic Cooperation
and Development (OECD) and the Food and Agriculture Organization (FAO) of the United
Nations forecasts the global rice trade to increase about 9% during 2015-2024.
The report expects the global players on international rice markets to remain the same. It expects
Thailand to retain the world's number one exporter status by 2024 and except for India, it expects
rice exports from all of the traditional exporters, namely Pakistan, Thailand, Vietnam and the
U.S. to increase.
The report estimates global rice production to increase about 70 million tons to around 564
million tons from the current 494 million tons (in 2014). The increase is mainly driven by yield
improvements while area expansion is expected to be limited. The global increase of 70 million
3


tons in rice production is expected to be dominated by Asian countries (61 million tons) mainly
India, Indonesia, Bangladesh, Thailand, Vietnam and China.
The FAO expects total production of cereals, including rice, to increase about 14% over the next
decade.
The report estimates global rice consumption to increase by 57 million tons to around 562
million tons over the next decade, marginally less than the previous decade. The growth is
expected to be higher in developing countries than in developed countries with Asian countries
accounting for almost 80% of global consumption increase.


The OECD-FAO report generally projects a steady decline in prices of food grains, including
rice due to an increase in overall agricultural production and diversification of dietary choices
towards other food items like meat and dairy products. A possible slowdown of fast growing
economies like China, and growing competition among exporters could also lead to a decline in
prices, it says. On the other hand, supply shortages caused by any severe droughts may result in
surging international prices.
India Reconsiders Rice Imports from

Myanmar
Jul 06, 2015


The government of India, which planned to import 100,000 tons of rice from Myanmar to fill the
supply gaps that are likely to arise in the north-eastern states of Manipur and Mizoram due to the
ongoing construction of railway line connecting the two states to the rest of the country, has
issued a directive to the Manipur state government to abandon all processes related with the rice
import activity, local sources reported.
Manipur government planned to import 10,000 tons of rice every month to meet the public
distribution (PDS) needs of the state. It also reportedly developed the requisite infrastructure
facilities such as food testing laboratory, godowns, etc in the border towns to accommodate the
imports.
According to local sources, the government of India issued the directive in the light of some
scams that were unearthed in the PDS implementation in some north-eastern states, including
Manipur. The FCI officials in Manipur also reportedly received the directive.
The government has decided to import rice despite having sufficient stocks with the FCI as
moving rice locally from other states such as Punjab or Andhra Pradesh by road is costlier than
importing it. Moreover the journey has to pass through hilly terrains and land-slide prone areas,
said local sources.
Indias rice stocks in the central pool as of June 1, 2015 stood at around 22.485 million tons
(including a milled equivalent of about 9.234 million tons of paddy), down about 20% from
around 28.03 million tons recorded during the same period last year, according to data from the
Food Corporation of India (FCI).
Oryza Overnight Recap Chicago Rough

Rice Futures Come Under Pressure as Lower
Crude Weighs on US Grain Prices
Jul 06, 2015
Chicago rough rice futures for Sep delivery are currently seen trading 4 cents per cwt (about $1
per ton) lower at $10.595 per cwt (about $234 per ton) during early floor trading in Chicago. The
other grains are seen trading lower this morning; soybeans are currently seen trading about 1.6%
lower, wheat is listed about 1.1% lower and corn is currently noted about 1.5% lower.
6


U.S. stocks traded lower on Monday, following declines overseas, as uncertainty over the Greece
debt crisis weighed on investor sentiment. The Dow Jones industrial average traded about 70
points lower after falling more than 150 points soon after the market open, Chevron leading most
blue chips lower. The Nasdaq also recovered from a near 1% plunge in the open as biotechs
recovered to trade higher. Energy fell more than 1% as the worst decliner in the S&P 500. WTI
crude plunged 4.2% $54.50 a barrel, its lowest level since April 15, amid the Greece debt drama
and volatility in Chinese markets. In a Sunday referendum, nearly two-thirds of Greeks voted
"no," rejecting a proposal from international creditors that would have required more austerity
reforms for debt relief. The European Central Bank is scheduled to hold a conference call later in
the day on the level of emergency liquidity assistance to Greek banks. Euro zone leaders will
meet at an emergency summit on Greece Tuesday. Gold is currently trading about 0.2% lower,
crude oil is seen trading about 2.2% lower, and the U.S. dollar is currently trading about 0.3%
higher at 8:15am Chicago time.
Oryza Afternoon Recap - Chicago Rough

Rice Futures Continue to Strengthen on
Rumors of Fresh Round of Export Business
Jul 06, 2015
Chicago rough rice futures for Sep delivery settled 18 cents per cwt (about $4 per ton) higher at
$10.815 per cwt (about $238 per ton). The other grains traded mostly lower today; Soybeans
closed about 1.6% lower at $10.1475 per bushel; wheat finished about 0.8% higher at $5.9550
per bushel, and corn finished the day about 0.5% lower at $4.3500 per bushel.
U.S. stocks held lower in choppy trade Monday, recovering sharp opening losses but failing to
hold slight gains amid continued uncertainty over the Greece debt crisis. Energy traded about 1%
lower as the worst decliner in the S&P 500. WTI crude plunged more than 5.5% to its lowest
level in several months, amid the Greece debt drama and volatility in Chinese markets. The
major averages fell back into negative territory after briefly trading in the black. In a Sunday
referendum, nearly two-thirds of Greeks voted "no," rejecting a proposal from international
creditors that would have required more austerity reforms for debt relief. German Chancellor
Angela Merkel said after a meeting with French President Francois Hollande that they respect
the vote of the Greeks and the door for talks with the country remains open, Reuters reported.
Last week, Greece became the first developed nation to default on a major loan from the
7


International Monetary Fund. U.S. economic data out Monday included the Institute for Supply
Management's June service sector survey, which hit 56.0 in June, versus the 56.2 estimate. The
Dow Jones Industrial Average traded down 75 points, or 0.43%, at 17,653. The S&P 500 traded
down 11 points, or 0.52%, at 2,065, with energy leading all 10 sectors lower. The Nasdaq traded
down 27 points, or 0.53%, at 4,982. Gold is trading about 0.4% higher, crude oil is seen trading
about 4.2% lower, and the U.S. dollar is seen trading at about 0.1% higher at about 1:00pm
Chicago time.
Thursday, there were 1,082 contracts traded, down from 1,285 contracts traded on Wednesday.
Open interest the number of contracts outstanding on Thursday decreased by 354 contracts to
9,250.
Global Rice Quotes

July 6th, 2015
Long grain white rice - high quality
Thailand 100% B grade 380-390
Vietnam 5% broken
345-355
India 5% broken
380-390
Pakistan 5% broken
380-390
Myanmar 5% broken
415-425
Cambodia 5% broken
425-435
U.S. 4% broken 450-460
Uruguay 5% broken
565-575
Argentina 5% broken
555-565
Long grain white rice - low quality

Thailand 25% broken
350-360
Vietnam 25% broken
325-335


Pakistan 25% broken
335-345
Cambodia 25% broken 410-420
India 25% broken
350-360
U.S. 15% broken
440-450
Long grain parboiled rice

Thailand parboiled 100% stxd
375-385
Pakistan parboiled 5% broken stxd
NQ
India parboiled 5% broken stxd 365-375
U.S. parboiled 4% broken
555-565
Brazil parboiled 5% broken
570-580
Uruguay parboiled 5% broken NQ
Long grain fragrant rice

Thailand Hommali 92% 825-835
Vietnam Jasmine
475-485
India basmati 2% broken
NQ
Pakistan basmati 2% broken
NQ
Cambodia Phka Mails
835-845
315-325
Vietnam 100% broken 310-320
Brokens
Thailand A1 Super


Pakistan 100% broken stxd

Cambodia A1 Super
290-300
350-360
India 100% broken stxd 275-285
Egypt medium grain brokens
NQ
U.S. pet food
350-360
Brazil half grain NQ
All prices USD per ton, FOB vessel, oryza.com
South Korea Buys 15,000 Tons of NonGlutinous Brown Rice from China in Tender
Jul 06, 2015
South Korea's state run Agro Fisheries & Food Trade Corporation (KAFTC) has purchased
15,000 tons of non-glutinous short-grain brown rice of the Chinese origin for delivery by
November 30, 2015 at $893 per ton, according to a statement on its website.
KAFTC originally sought to purchase about 59,104 tons of non-glutinous rice via six tenders for
which the bidding took place on July 3, 2015. It announced results for 15,000 tons of nonglutinous brown rice via one tender on the same day. It will announce the results for the
remaining 49,104 tons after sample tests are complete, according to the website.
Bee Keepers Beware of Rice Paddies!

Jul 06, 2015
10


Pesticides used in rice fields are posing threat to the existence of honey bees in Japan, the Japan
Times quoted a study by the Agriculture Minsitry.
Officials told local sources that large-scale honey bee deaths had occurred due to pesticides
sprayed on paddies near apiaries. They noted that Japan has nearly 9,300 bee keepers. They
noted that the number of reported cases of mass deaths of honey bees reached around 79 in FY
2014 rom around 69 in the previous year and just few cases in years before that.
They also told that nearly 1,000 to 3,000 honey bees were found to have died per hive, and
pesticides were detected on many of the dead bees. They noted that honey bees get victims to
pesticides while collecting rice pollen. These tainted honey bees are understood to have caused
deaths of bees inside the hive boxes.
The Ministry has instructed prefectural governments to set up consultative bodies of rice farmers
and bee keepers to allow each of the members to share information on pesticide programs and
11


discuss ways to reduce damage to bees. It suggested solutions such as temporary relocation of
hive boxes to safer places and the use of granulated insecticides instead of powder fertilizers and
pesticides.
USDA Post Estimates Thailand 2015 Rice

Exports to Decline to 10 Million Tons Due to
Competition from Vietnam
Jul 06, 2015
USDA Post estimates Thailand's 2015 rice exports at around 10 million tons against the earlier
estimated 11 million tons due to a competition from Vietnam especially for 5% broken white
rice.
12


The Post revised its estimates based n the pace of Thai rice exports during the first five months
of 2015. Thailand exported 3.8 million tons of rice during January - May 2015, down about 1.4%
from the same period last year. It reports that white rice exports declined about 10% y/y during
the five-month period as the prices of Vietnamese rice are lower than Thai rice. Currently, the
price difference between Thai and Vietnamese rice prices (5% grade white rice, FOB) is $30 per
ton, compared to around $20 per ton in May.
The government is also very cautious in selling the rice stocks, which accumulated from the rice
pledging scheme introduced by the previous government, in order to avert price falls. It sold
around 2.1 million tons of government stocks in the first six months of 2015, compared to around
3 million metric tons in the same period last year.
The Post estimates Thai MY 2015-16 (January - December 2015) paddy rice production at
around 27.3 million tons (around 18 million tons, basis milled), down 7% from last year due to
drought. Around 1 million rai (0.16 million hectares) of main-crop rice in irrigated area in the
central plains is expected to be adversely affected by drought. The government has reduced
water supplies in the central region due to lower water levels in the Chao Phraya river basin. The
country's second crop is also likely to be affected as water levels in reservoirs are expected to be
low due to lower-than-expected precipitation between May and June.
Thailand's rice consumption in MY 2015-16 is expected to increase to around 12 million tons
from an estimated 11.7 million tons last year as the government is planning to sell about 500,000
tons of rice to the industrial sector for ethanol manufacturers.
Brunei Stepping Up Efforts to Increase

Quality of Rice Production, Says Minister
Jul 02, 2015
13


The government of Brunei is stepping up efforts to increase the quality of rice production rather
than focusing on just increasing the volume, Brunei Times quoted the Minister of Industry and
Primary Resources (MIPR).
The Minister who attended the forth planting of Padi Laila at the Kampung Limau Manis
Agricultural Development Area (Kawasan Kemajuan Pertanian, KKP), which was organized by
the Department of Agriculture and Agrifood (DAA), told reporters that the government is also
planning to provide farming entrepreneurs with a quality planting system in order to support
them to achieve quality yields by avoiding threats like birds, rodents, insects and pests. He noted
that more research is needed to identify potential threats accompanying rice production.
Rice production is being carried out in KKP since 2013 by 21 entrepreneurs who completed a
basic padi planting management course through the Brunei Rice Farmers Field School organised
by the DAA and each entrepreneur manages two to three lots. The DAA had supported the KKP
14


project with a concrete drainage and irrigation technology. The project yielded a total of 100,800
kilograms in the 2013-14 prime season, 42,000 kilograms in the off-season and 79,700 kilograms
in 2014-15 prime season. The project sells its output to the government under a buy-back
agreement.
In March this year, the MIPR Minister apprised the Parliament that the country produced around
1,380 tons of milled rice in 2014, up about 12% from 1,230 tons in 2013 and was far from
achieving the 60% rice-sufficiency target by 2015. He noted that the Ministry has identified
certain problem areas, which have to addressed to achieve a significant increase in rice
production.
Bruneis milled rice production has remained at around 1,000 tons since 2002, and the country
imports most of rice required for domestic consumption. In 2008, the Sultan of Brunei said that
Brunei Darussalam should not be dependent on other countries for its rice supply and should
have their own strategic plan to ensure food security.
The USDA estimates Brunei's milled rice production to remain at 1,000 tons in the MY 2014-15
(January - December 2015), and estimates the country to import around 40,000 tons in MY
2014-15 to meet an annual consumption demand of around 41,000 tons.
Vietnam Rice Exports Decline Sharply in

First Six Months of 2015
Jul 06, 2015
Vietnam exported around 2.713 million tons of rice in first half of calendar year 2015 (January
June), down about 10% from around 3.015 million tons of rice exported in first half of 2014,
according to data from the Vietnam Food Association (VFA). Average rice export price so far in
this year stands at around $417 per ton (FOB), down about 3% per ton from around $431 per ton
recorded during same last year.
15


In June 2015, Vietnam exported around 632,010 tons of rice, up about 20% from around 525,742
tons rice exported in May 2015, and down about 6% from around 671,174 tons rice exported in
June 2014. Average export prices in June 2015 stands at about $406 per ton, almost down about
4% from a year ago, and down about 5% per ton from a month ago.
Vietnam Decides to Retain VAT on Domestic

Rice
Jul 06, 2015
The government of Vietnam has decided not to slash the value added tax (VAT) on rice
consumed in the domestic market at the current 5%, according to local sources.
The Vietnam Food Association (VFA) reportedly recommended that the government slash the
VAT on rice consumed in the domestic market to 0.5% in order to develop a rice brand in the
domestic markets.
16


However, the Finance Ministry opined that the VAT cannot lowered as there was no 0.5% tax
rate in the existing VAT Law. The Ministry stated that if a new rate is added, it would not be in
line with the VAT reform strategy for the 2011-2020 period. The Law basically aims at
narrowing down the number of subjects for VAT imposition. It also noted that international law
allow zero VAT only for exports and not for domestic consumption.
The Prime Minister reportedly approved the Finance Ministry's proposal.

According to data from the Ministry of Agriculture and Rural Development (MARD), during the
2010-15 period, less than 15% of the country's total rice output of about 22 million tons, was
only subject to 5% VAT as the remaining was being used for exports and self-consumption.
Rice used for animal feed and fertilizers will continue to be exempted from VAT, according to
local sources.
17



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July 7 ,2015

Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine |

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Cambodia Rice Exports Increase Sharply in

Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine |

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OECD-FAO Report Estimates Global Rice

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Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine |

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India Reconsiders Rice Imports from

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Oryza Overnight Recap Chicago Rough

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Oryza Afternoon Recap - Chicago Rough

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Global Rice Quotes

U.S. 4% broken 450-460

Long grain white rice - low quality

Vietnam 25% broken

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Pakistan 25% broken

Cambodia 25% broken 410-420

India 25% broken

U.S. 15% broken

Long grain parboiled rice

Pakistan parboiled 5% broken stxd

India parboiled 5% broken stxd 365-375

U.S. parboiled 4% broken

Brazil parboiled 5% broken

Uruguay parboiled 5% broken NQ

Long grain fragrant rice

India basmati 2% broken

Pakistan basmati 2% broken

Cambodia Phka Mails

Vietnam 100% broken 310-320

Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine |

For Blog & daily Newsletter advertisement contact:

Pakistan 100% broken stxd

India 100% broken stxd 275-285

Egypt medium grain brokens

U.S. pet food

Brazil half grain NQ

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

Bee Keepers Beware of Rice Paddies!

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USDA Post Estimates Thailand 2015 Rice

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Brunei Stepping Up Efforts to Increase

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Vietnam Rice Exports Decline Sharply in