Daily Exclusive ORYZA Rice E-Newsletter

March 30,2016
Vol 7,Issue III

www.ricepluss.com

www.riceplusmagazine.blogspot.com

Daily Exclusive ORYZA Rice E-Newsletter

Asia Rice Quotes Unchanged Today

Asia rice sellers kept their quotes unchanged Today.
5% Broken Rice
Thailand 5% rice is indicated at around $365 - $375 per ton, about $15 per ton discount to
Vietnam 5% rice shown at around $380 - $390 per ton. India 5% rice is indicated at around $365
- $375 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $335 - $345 per
ton.
25% Broken Rice
Thailand 25% rice is indicated at around $355 - $365 per ton, about $10 per ton discount to
Vietnam 25% rice shown at around $365- $375 per ton. India 25% rice is indicated at around
$335- $345 per ton, about $30 per ton premium on Pakistan 25% rice shown at around $305 $315 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice is
indicated at around $350 - $360 per ton, about $55 per ton discount to Pakistan parboiled rice
last shown at around $405 - $415 per ton.
100% Broken Rice
Thailand broken rice, A1 Super is indicated at around $330 - $340 per ton, about $20 per ton
discount to Vietnam 100% broken rice shown at around $350 - $360 per ton. India's 100%
broken rice is shown at around $265 - $275 per ton, about $20 per ton discount to Pakistan
broken sortexed rice shown at around $285 - $295 per ton.

Cambodian Foreign Minister Calls for

Malaysian Investments in Rice Milling Sector
Mar 29, 2016

Cambodia's Foreign Minister has urged Malaysian businessmen to invest in the country's rice
milling sector as part of discussions with the Malaysian Ambassador to Cambodia this week,
according to Khmer Times.
His excellency [Foreign Minister] told the ambassador that Cambodian fields can produce four
million tons of rice to export. But Cambodia is facing the problem of lacking rice mills to
produce quality rice for exporting to foreign markets, said the Foreign Ministry spokesman.
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He noted that Malaysian investment in Cambodian sectors reached around $62 million in 2015,
up from around totalled $24 million in 2014.
Domestic rice millers and exporters have been since long time urging the government to boost
investment in rice milling sector to enhance rice exports.
Cambodia exported around 95,945 tons of milled rice in the first two months of 2016, up about
30% from around 73,597 tons exported during the same period last year, according to data from
the Secretariat of One Window Service for Rice Export Formality (SOWS-REF). Cambodia
exported around 538,396 tons of milled rice in 2015 (January - December), up about 39% from
around 387,061 tons exported during the same period last year.
The government of Cambodia aimed to increase official rice exports to one million tons in 2015
but missed the target due to inadequate milling facilities and infrastructure as well as lack of
access to funding.

Oryza U.S. Rough Rice Recap Cash Prices

Continue to Drop amid Weak Demand
Mar 30, 2016

The U.S. cash market was weaker yet again today, falling with the futures market on continued
soft demand.
There were even reports of rice trading at the lowest levels seen this marketing despite limited
farmer selling.
Analysts note that most farmers are preoccupied getting their crop planted and not interested in
selling at the levels buyers are willing to pay today.
Going forward, all eyes will be on the USDAs Rice Stocks and Prospective Planting Report that
comes out on Thursday.

European Farmers Unions Call for

Simplified Risk Management Tools Under
EU CAP
Mar 29, 2016

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The European farmers unions Copa and Cogeca have stressed on the need for protecting farmers
against risks such as higher market volatility, greater exposure to new animal and plant diseases,
as well as the impact of climate change.
The newly re-elected Chairwoman of Copa and Cogeca Working Party said measures (such as
insurance) to help protect famers against these risks as well stabilize their incomes are important.
We need to intensify work on risk management. Its crucial to ensure a coherent approach with
the other working parties like cereals. We need to deepen innovation technology to help develop
the measures further," she said.
She aims to simplify the risk management toolkit under the Common Agricultural Policy (CAP)
Second Pillar of Rural Development Policy. She also aims to cut red tape to ensure the measures
are more effective under the CAP simplification initiative.
The farmers unions also stressed that such tools must complement the existing system of direct
payments and market management measures under the CAP.

Italy Urges European Commission to Apply

Safeguard Clause to Zero Duty Rice Imports
Mar 29, 2016
The Italian Minister of Agriculture has submitted a document to the European Commission (EC)
Rice Committee urging it to apply duties to zero-duty EU rice imports from the Asian Least
Developed Countries (LDCs) through a safeguard clause to protect the local rice sector,
according to local sources. It says the EU rice "import situation totally out of control."
According to the document, the Ministry seeks to activate emergency measures to limit imports
of rice at zero duty. It states the aim is "to rebalance internal production according to the real
needs of the market. On this point Italy has already required to restore normal duties through the
activation of the safeguard clause.
The document states that an increase in rice imports coupled with the slowdown in the volume of
Communitarian exports and low international prices, is creating surplus rice supplies in the EU
further leading to lower paddy market prices.
It also states that total rice imports to EU, including those from the Asian LDCs under the
'Everything But Arms' agreement as well the other free trade agreements, reached around
633,000 tons (milled equivalent) in the first six months of crop year (cy) 2015-16 (September
2015 - February 2016), up about 112,000 tons compared to the imports during the same period

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last year. It says the increase in imports has already surpassed the EC's target increase of 97,000
tons for the whole year.
Based on the EU data, the document also says the EU stock level in cy 2015-16 is likely to reach
585,000 tons as against 440,000 tons in cy 2014-15, 472,000 tons in cy 2013-2014 , 540,000 tons
in cy 2012-13, 494,000 tons in cy 2011-12 and cy 471,000 tons in 2010-11.

FAO Forecasts China MY 2015-16 Rice

Imports to Decline 6% y/y to 5.8 Million Tons
Mar 29, 2016

The UN's Food and Agriculture Organization (FAO) forecasts China's MY 2015-16 (June - May)
rice imports (both official and unofficial) to decline about 6% y/y to around 5.8 million tons due
to government's efforts to limit informal imports. The FAO forecasts china's total cereal imports
in the 2015-16 marketing year to fall by 9% y/y to 28 million tons from last year's exceptionally
high level due to record 2015 harvests and large stocks.
The FAO forecasts China's 2015 paddy rice output at around 208.25 million tons, up from
around 206.507 million tons in 2014 due to favourable weather conditions.

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Retail prices of Japonica rice were stable in February 2016 mainly due to adequate availabilities
from the 2015 record production, according to the FAO. However, prices were below their yearago levels.

Global Rice Quotes

March 30th, 2016
Long grain white rice - high quality
Thailand 100% B grade 375-385

Vietnam 5% broken

380-390

India 5% broken

365-375

Pakistan 5% broken

340-350

Myanmar 5% broken

415-425

Cambodia 5% broken

420-430

U.S. 4% broken 440-450

Uruguay 5% broken

435-445

Argentina 5% broken

425-435

Long grain white rice - low quality

Thailand 25% broken

355-365

Vietnam 25% broken

360-370

Pakistan 25% broken

310-320

Cambodia 25% broken 400-410

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 350-360

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% 665-675

Vietnam Jasmine

470-480

India basmati 2% broken

NQ

Pakistan basmati 2% broken

NQ

Cambodia Phka Mails

755-765

330-340

Vietnam 100% broken 350-360

Brokens
Thailand A1 Super

Pakistan 100% broken stxd

Cambodia A1 Super

285-295

345-355

India 100% broken stxd 265-275

Egypt medium grain brokens

NQ

U.S. pet food

315-325

Brazil half grain NQ

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

Oryza CBOT Rough Rice Futures Recap Chicago Rough Rice Futures Continue to Fall
as Market Looks Ready to Test $10.000/cwt;
U.S. Grain Prices Move Higher as Traders
Await Thursday's USDA Reports
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Daily Exclusive ORYZA Rice E-Newsletter

Mar 29, 2016

Chicago rough rice futures for May delivery settled 12.5 cents were cwt (about $3 per ton) lower
at $10.065 per cwt (about $222 per ton). The other grains finished the day higher; Soybeans
closed about 0.9% higher at $9.1700 per bushel; wheat finished about 1% higher at $4.7575 per
bushel, and corn finished the day about 0.7% higher at $3.7300 per bushel.
U.S. stocks traded higher Tuesday as investors digested afternoon remarks from Fed Chair Janet
Yellen. The Dow Jones industrial average briefly traded 100 points higher, after dipping 101
points in morning trade. In a question-and-answer session following her speech, Yellen said
there are risks, but "not all to the downside." According to prepared remarks, Yellen said that
economic readings are mixed and it is appropriate to proceed cautiously. At 12:20 p.m. ET,
Yellen was scheduled to speak on the "Economic Outlook and Monetary Policy" at the
Economic Club of New York. Investors will scrutinize her comments for indications on the
timing of the next rate hike. Recent policymaker comments have learned more hawkish than
what came out of the March meeting, which was more dovish than many expected. Overseas,
major European indexes closed mostly higher.
Asian equities closed mostly lower, with the Shanghai composite off more than 1% and the
Nikkei 225 about 0.2% lower. The Hang Seng closed up 0.1%.In early afternoon trade, the Dow
Jones industrial average gained 42 points, or 0.24%, to 17,577. The S&P 500 traded up 8 points,
or 0.38%, to 2,044, with information technology leading eight sectors higher and energy and
financials the only decliners. The Nasdaq composite rose 49 points, or 1.02%, to 4,815. Gold is
seen trading about 1.5% higher, crude oil is seen trading about 2.7% lower, and the U.S. dollar is
seen trading about 0.8% lower at about 1:45pm Chicago time.
Monday, there were 170 contracts traded, down from 848 contracts traded on Thursday. Open
interest the number of contracts outstanding on Monday increased by 14 contracts to 12,525.

USDA Post Forecasts Colombia MY 2016-17

Rice Imports to Decline 14% y/y on Higher
Production
Mar 29, 2016
The USDA Post forecasts Colombia's MY 2016-17 (April - March) rice imports at around
320,000 tons, slightly up from an estimated 300,000 tons last year due to an expected increase in
production.
The Post reports that the U.S. market share could be challenged by new phytosanitary protocols
for MERCOSUR milled rice creating more sourcing options for importers. Usually, Colombia
imports more rice from neighboring countries. However, El Nino impacts and trade limitations
have resulted in lower imports from Ecuador and Peru. Similarly, border issues with Venezuela
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have also reduced contraband rice flows into Colombia. The table below shows Colombia rice
imports by country in 2014 and 2015.

The USDA Post forecasts Colombia's MY 2016-17 paddy rice production at around 2 million
tons, up from an estimates 1.985 million tons last year. Planting operations of the first 2016 crop
in February/early March were impacted by the El Nino weather conditions. But the second 2016
crop may be benefited by the La Nina induced rains.
The Colombian Agriculture Ministers Planting Plan (Plan Siembra) initiative aims to increase
the rice planting area by 100,000 hectares in 2016. access to credit and technology and labor
inputs, in addition to infrastructure challenges with storage and milling capacity may pose
challenges to the target.
The Post forecasts Colombia's MY 2016-17 rice consumption to increase to 1.66 million tons
from an estimated 1.6 million tons last year due to a likely increase in population.

Thailand's Decision to Fully Fund HighSpeed Rail Project not to Impact Rice Deals
with China, Says Minister

Daily Exclusive ORYZA Rice E-Newsletter

Mar 29, 2016

The Thai Commerce Minister has assured that the rice and rubber deals with China won't be
affected due to a change in the investment pattern in the proposed Thai-Sino high-speed rail
project, according to Bangkok Post.
The Thai government and the Chinese authorities signed a memorandum of understanding
(MoU) in December 2014 for one million tons of each of old and new grains as well as for
200,000 tons of rubber as part of the Thai-Sino high-speed rail plan.
Originally, a 845 kilometre route from Bangkok to Nong Khai and another from Kaeng Khoi in
Saraburi to Map Ta Phut in Rayong province were planned. But the government changed the
plan and decided to construct only the 250 kilometre Bangkok-Nakhon Ratchasima section and
wholly invest in the project without the need for China to fund the project. Accordingly, it has
decided to cut the size of big-ticket infrastructure projects has been slashed to 1.5 trillion baht
(around $42.5 billion) from 1.7 trillion baht (around $48.2 billion).
However, the government of Thailand has reportedly decided to invest solely and fully fund the
proposed rail project but use the Chinese technology to build and operate the system. He noted
that the change in government's decision will not impact the sales of 2 million tons of rice and
200,000 tons of rubber agreed earlier.
The Thai government aims to sell over 2 million ton s of rice this year on a government-togovernment basis.

Vietnam Exporters Plan to Sell Rice to

French Retail Group
Mar 29, 2016

Vietnam rice exporters are planning to sell to France's second largest retail chain, according to
http://lecourrier.vn.Representatives of about 27 Vietnamese rice producers and exporters met the
import manager of the group in Paris on March 24, 2016. He reportedly presented to Vietnamese
enterprises the types of agricultural quality standards required by his group. He also explained
about the rice import needs of the French market as well as the European markets.
He noted that France is one of the largest in Europe rice consumers with nearly 240,000 tonnes
per year. He advised Vietnamese enterprises to understand the habits and tastes of French
consumers, as well as issues related to the needs of the market, if they want to export their
products to France. He added that the Vietnamese fragrant rice may have a market in France if
quality is guaranteed.

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Currently, France imports mainly rice from India, Thailand and Cambodia, and also needs rice
flour. Vietnamese rice is not widespread in France, and Vietnamese producers are keen on
building their label on this market.
However, representatives of Vietnamese companies expressed concern about the high tax levied
on Vietnamese rice, from 165 to 175 euros (around $185) per ton, in the French market.
The Secretary General of the Vietnam Food Association (VFA) added that Vietnam should pay
special attention to food hygiene and quality of its products to boost exports to demanding
markets. He expressed hope that the Vietnam - EU free trade agreement (FTA) may help
Vietnamese companies to gain market share in the French and other EU markets.

Wholesale Basmati Rice Prices in India Rise

on Increased Buying for Stocking
Mar 29, 2016

Wholesale basmati rice prices in the national capital increased today, owing to an increased
buying for stockpiling against restricted supplies from producing regions, according to the Press
Trust of India (PTI).On March 29, 2016, prices of Pusa 1121 increased to around Rs.4,250 5,200 per quintal (around $637 - $779 per ton) from previous levels of around Rs.4,100 - 5,100
per quintal (around $614 - $764 per ton).
Prices of common basmati increased to around Rs.5,500 - 5,600 per quintal (around $824 - $839 per
ton) from previous levels of around Rs.5,300 - 5,400 per quintal (around $794 - $809 per ton).
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