17th march,2015 daily exclusive oryza rice e newsletter by riceplus magazine

Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com

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Daily Exclusive ORYZA Rice

Newsletter

Volume 5, Issue I

March 17, 2015


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Vietnam, Thailand Plan to Jointly Develop

Sustainable Rice Markets

Mar 16, 2015

Agriculture Ministers of Thailand and Vietnam, who met in Hanoi on March 12, 2015, have

decided to work closely to develop sustainable rice markets in order to increase the quality and

value of rice production in the long-run, according to local sources.

Thailand and Vietnam together contribute to over half of global rice exports.The Thai

Agriculture Minister noted that rice prices in both Thailand and Vietnam have been declining

despite both being the world's biggest rice exporters due to competitive global prices. Since

Vietnam and Thailand grow similar types of rice, the Thai Minister suggested that both the

governments could work together and design a long-term strategy by defining common grain


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standards, quality and prices.The Vietnam Agriculture Minister reiterated the government's

intention to jointly work with Thailand to derive long-term benefits.

EU Project Uses Space and Sensory

Technology to Boost Rice Yields

Mar 16, 2015

The European Union (EU) funded project ERMES is developing new models for monitoring rice

crops through advanced information, including early warnings of possible threats, and there by

boost rice yields, according to a notice on the EU website.The project aims at integrating

innovative remote sensing and crop modelling techniques to assist farmers and authorities in rice

cultivation and monitoring activities. The data collected will be used to develop two web-based

services - Local Rice Service (LRS) and a Regional Rice Service (RRS) - to improve rice

production in Europe.

The project mainly aims to reduce production costs, achieve efficiencies and minimize the

impact of rice production on environment.The LRS provides value added information for

farmers on yields ad crop damages to farmers as well as help them in using the right amount of

fertilizers depending on the variety of rice seed used. Customized smart applications for mobile

phones and tablets are being developed to aid the farmers benefit from these services.The RRS is

a customized agro-monitoring resource for crop mapping, yield estimating and risk forecast for a

particular region.

The project is coordinated by the Institute on Electromagnetic Sensing of Environment (CNR-

IREA), and involves partners of four European countries (Greece, Spain, Italy, Switzerland) with

strong expertise in different scientific domains, such as: Remote Sensing, Crop Modelling,

Agronomy and Information and Communication Technology.

USDA Forecasts 2014-15 Global Milled Rice

Production at 474.9 Million Tons, Slightly

Down from Previous Year

Mar 16, 2015


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In its March Rice Outlook report, USDA has forecasted 2014-15 global milled rice production

at around 474.9 million tons, slightly down from an estimated 476.96 million tons in 2013-14,

and slightly up from its last month's estimates of around 474.6 million tons. Most of this year's

decline is due to expected decline in South Asia rice production, according to the U.S. agency.

USDA estimates East Asia and Southeast Asia to harvest record or near-record rice crops in

2014-15, while it forecasts a little change in production levels of South America and Sub-

Saharan Africa.

In the latest report, USDA increased its production estimates for India 2014-15 rice production

by around 500,000 tons to around 102.5 million tons due to expected larger Rabi crop

(November - May), which accounts for about 15% of India's total production. Harvesting of Rabi

crop is likely to begin this month. USDA also raised its production estimates for Sri Lanka based

on government's reports of a higher Maha crop (September - March), which accounts for nearly

70% of Sri Lanka's rice production. However, USDA lowered its production estimates for

Thailand due to a reduction in harvested area of dry season crop, which accounts for about 25-

30% of Thailand's total production, by about 18%, due to ongoing drought conditions.


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USDA forecasts 2014-15 global rice acreage at around 159.6 million hectares, slightly down

from last year's 160.8 million hectares, and slightly down from its previous month's estimates of

around 160.2 million hectares due to an expected y/y decline in Thailand and India rice acreage.

It has forecasted the average global yield at 4.43 tons per hectare (on rough rice basis), almost

unchanged from last year as well as last month's projections.

USDA estimates 2014-15 global rice consumption and residual use at a record 483.7 million

tons, up about 2.9 million tons from last year, and up about 500,000 tons from an estimated

483.2 million tons last month. Major increases in consumption and residual use are expected in

Bangladesh, China, India, Indonesia, Nigeria, the Philippines, and the U.S.

The U.S. agency estimates 2014-15 global rice ending stocks at around 97.6 million tons, down

about 8% from an estimated 106 million tons last year and down about 600,000 tons from last

month's projection of about 98.2 million tons. USDA estimates lower ending stocks in India,

Indonesia and Thailand but higher stocks in the Philippines and the U.S. It estimates 2014-15

global stocks-to-use ratio at 20.2%, down from last year's 22.1%.

Thailand to Set Up Two Panels to Investigate

G2G Rice Deals

Mar 16, 2015

The government of Thailand has decided to set up two investigative panels to probe for alleged

corruption in government-to-government (G2G) deals as part of the rice pledging scheme

introduced by the former Prime Minister Yingluck Shinawatra, according to local sources. The

scheme offered to pay farmers nearly 50% over the market prices.The probe comes after the

National Anti-Corruption Commission (NACC) advised the Ministry to file civil suits against the

21 accused individuals, including the former Commerce Minister, the former Deputy Commerce

Minister as well as 19 high-level officers and private sector employees, for alleged corruption in

G2G rice deals with China.

Two panels will be set up within the next ten days and the investigation is likely to be completed

by September 1, 2015. If the panels find the accused officials guilty of "deliberate or serious

reckless acts" aimed at taking advantage of their positions under the Act on Liability for

Wrongful Acts of Officials, compensation would be sought from them, and if the panels find no

grounds of corruption, the government may not recover any damages from the officials, a

Finance Ministry source was quoted as saying.


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One panel is attached to the Finance Ministry and will carry out probe related to the former PM.

The other panel is attached to the Commerce Ministry and will investigate the case linked to the

former Commerce Minister and his Deputy, according to local sources.The Finance Ministry

source reportedly stated that the case is the first of its kind, which aims to recover damages from

officials executing government policy. It also stated that the case would create some sort of fear

in state officials in the future.

Last month, the Thai Attorney General has filed criminal charges against the former PM for

alleged negligence in overseeing the rice pledging scheme, which brought losses to the extent of

600 billion baht (around $18 billion) to the government. Estimated losses include depreciation of

rice stocks as well as missing stocks from warehouses, according to local sources. The Supreme

Court will decide on March 19, 2015 whether to pursue the criminal case against the former PM.

Philippines Plans to Review Rice Import

Policy


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Mar 16, 2015

The National Economic and Development Authority (NEDA) has decided to review the

government's agriculture policy especially with regard to rice imports and the quantitative

restriction (QR) regulations, local sources quoted the NEDA Director General (DG) as

saying.Speaking at a media briefing, the NEDA DG, who is also the country's Chief Economist

and Socioeconomic Planning Secretary, reportedly noted that the decision has been taken by the

Economic and Development cluster of the Cabinet. He noted that the government was

considering to repeal the Agricultural Tariffication Act of 1996, RA No.8178, under which QRs

were imposed on rice imports.

He also noted that the related government agencies, including the Department of Agriculture

(DA) have agreed to come up with proposals to eventually scrap the QR system. A technical

working group would be set up to study the benefits and risks associated with the QR regime in

rice imports as well as come up with measures to stabilize prices.The Chief Economic Secretary

noted that QRs on rice were leading to imbalance between demand and supply of rice leading to


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spike in prices. Last week, he suggested the government to remove QRs on rice imports to

stabilize rice prices in the country. He slammed the government's decision to seek extension of

the QRs on rice imports at the World Trade Organization (WTO) in order to protect the local rice

sector from foreign competition.

Last year, the WTO allowed the Philippines to extend the QRs until 2017. Under the new QR

policy, the Philippines can import 805,200 tons of rice under the minimum access volume

(MAV) of at 35% duty. Imports above the MAV will attract 50% duty.He noted that the

government should allow private sector to determine prices and also suggested that the

government needs to monitor the supply of demand for rice to avert upward pressure on prices.

He also noted that the government should focus on initiatives such has better irrigation systems

and latest agricultural technologies to increase rice production and farmers' incomes.The

National Food Authority (NFA) has decided to import 200,000 tons of rice from Thailand and

300,000 tons of rice from Vietnam under government-to-government (G2G) deals to ensure

adequate stocks ahead of the lean season as well as to curb price hikes. The NFA imported over

1.4 million tons of rice last year.

Government of Bangladesh Estimates 2014-

15 Aman Rice Output at 13.189 Million Tons;


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Up 1.3% from Last Year

Mar 16, 2015

The government of Bangladesh has estimated the total output from 2014-15 Aman rice crop

(April - December) at around 13.189 million tons, up about 1.3% from around 13.023 million

tons produced in 2013-14, according to local sources.The estimates were worked out last week at

a meeting of senior officials of Agriculture Ministry, Department of Agricultural Extension

(DAE), Bangladesh Bureau of Statistics (BBS) and Space Research and Remote Sensing

Organization (SPARSO). The meeting also estimated the 2014-15 Aman paddy yield at around

2.385 tons per hectare.

Harvesting of 2014-15 Aman rice completed in December and the government procured around

319,977 tons of 2014-15 Aman (April - December) rice as of February 28, 2015, according to the

Food Ministry data.Harvesting of the ongoing 2015 Boro rice crop (January - May) will

complete by the end of May and the government is expecting a total output of around 19 million

tons, up about 2% from around 18.78 million tons produced in 2014. The government is planning

to procure around one million tons of Boro paddy and around 100,000 tons of Boro rice between

May 1 - August 31, 2015. The government procured around 1.06 million tons of paddy and rice

in 2014.

Bangladesh produced around 34.449 million tons of rice, basis milled, in FY 2013-14 (July -

June), up about 2.7% from around 33.833 million tons produced in FY 2012-13, according to

DAE data.USDA estimates Bangladesh to produce around 34.6 million tons of milled rice in MY

2014-15 (May - April), up about 1% from an estimated 34.39 million tons in MY 2013-14. It

estimates Bangladesh to import around 600,000 tons of rice in 2015, down about 20% from an

estimated 751,000 tons in 2014.

Thailand, Pakistan Rice Sellers Lower Their

Quotes Today; Other Asia Rice Quotes

Unchanged

Mar 16, 2015


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Thailand rice sellers lowered their quotes for 5% broken rice and parboiled rice by about $10 per

ton and about $15 per ton respectively to around $385 - $395 each today. Pakistan rice sellers

lowered most of their quotes by about $5 - $10 per ton today. Vietnam and India rice sellers kept

their quotes mostly unchanged today.

5% Broken Rice

Thailand 5% rice is indicated at around $385 - $395 per ton, down about $10 per ton from Friday

and about a $20 per ton premium on Vietnam 5% rice shown at around $365 - $375 per ton.

India 5% rice is indicated at around $390 - $400 per ton, about a $45 per ton premium on

Pakistan 5% rice shown at around $345 - $355 per ton, down about $5 per ton from Friday.

25% Broken Rice

Thailand 25% rice is shown at around $370 - $380 per ton, about a $30 per ton premium on

Vietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around

$360 - $370, about a $50 per ton premium on Pakistan 25% rice shown at around $310 - $320

per ton, down about $5 per ton from Friday.

Parboiled Rice

Thailand parboiled rice is indicated at around $385 - $395 per ton, down about $15 per ton from

Friday. India parboiled rice is indicated at around $380 - $390 per ton, about $5 per ton discount

to Pakistan parboiled rice shown at around $385 - $395 per ton, down about $10 per ton from

Friday.

100% Broken Rice

Thailand broken rice, A1 Super, is indicated at around $320 - $330 per ton, about a $15 per ton

premium on Vietnam 100% broken rice shown at around $305 - $315 per ton. India's 100%

broken rice is shown at around $275 - $285 per ton, about a $5 per ton discount to Pakistan

broken sortexed rice shown at around $280 - $290 per ton, down about $10 per ton from Friday.

Oryza Overnight Recap – Chicago Rough

Rice Futures Lower Overnight Despite

Firmer Grains to Begin the Weeek

Mar 16, 2015


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Chicago rough rice futures for May delivery are currently listed 11 cents per cwt (about $2 per

ton) lower at $10.470 per cwt (about $231 per ton) during early floor trading in Chicago. The

other grains are seen trading higher this morning: soybeans are currently seen about 0.2% higher,

wheat is listed about 1.1% higher and corn is currently noted about 0.2% higher.U.S. stocks

opened higher on Monday, as investors eyed weakness in the dollar and oil prices ahead of

Wednesday's key Fed meeting.

The U.S. dollar index fell about half a percent on Monday after gaining nearly 3 percent in the

last week as the euro fell to 12-year lows below $1.05. Crude oil extended losses to dip below

$44 a barrel, a six-year low, while Brent fell below $54 a barrel. U.S. stocks mostly sold off last

week amid more than 1% swings as investors weighed the implications on an interest rate hike

from the dollar surge and mixed economic data. In the lull before companies begin reporting

first-quarter earnings in mid-April, few firms post results this week. Economic data is also light,

with the housing market index the only key report expected during Monday's trading session.

Before the bell, the Empire State Index posted 6.90 for March, below February's 7.78. Industrial

production rose 0.1% in February, below expectations, with capacity utilization slightly lower at

78.9%. Gold is currently trading about 0.4% higher, crude oil is seen trading about 1.7%

lower, and the U.S. dollar is currently trading about 0.7% lower at 8:00am Chicago time.

Japan Exporters Launch "This is Japan

Quality" Mission to Boost Rice Exports

Mar 16, 2015

The Japan Rice and Rice Industry Export Promotion Association has launched the "This is Japan

Quality" initiative jointly with the Agriculture Ministry to boost rice exports by highlighting the

merits of Japanese rice, according to local sources.The exporters are initially focusing on

increasing rice exports to Singapore before expanding exports globally, the Association's

Chairman was quoted as saying. Singapore has been chosen so as to take advantage of the

Singaporeans' appetite for Japanese cuisine, he said. The Chairman added they are planning to

use the high income nation as a "strategic springboard" to expand Japanese culinary culture in

Southeast Asia and spur interest in Japanese rice products.Japan exported around 1,200 tons of

rice worth around 370 million yen (around $3 million) to Singapore last year.

The Association has also launched a logo for Japanese rice and rice products as well as website

containing information on Japanese rice. Buyers can track information of various rice varieties

based on the QR codes on the packages.Japan rice export market is about 1.4 billion yen (around


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$11.5 million) and the government is keen on increasing the export value of rice and rice

products to around 60 billion yen (around $495 million) by 2020, the Director General for crop

production at the Agriculture, Forestry and Fisheries Ministry was quoted as saying. Declining

rice consumption in Japan is cited as one of the reasons for promoting exports of rice and rice

products, say local sources.

Oryza U.S. Rough Rice Recap - Prices Stable

amid Limited Trade; Export Bids Getting

Zero Attention

Mar 16, 2015

The U.S. cash market was uneventful today as most buyers and seller remain uninterested in

trading this market.There are reports of some small lots trading around $10.75-$11.00 per cwt


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(about $237-$243 per ton) delivered mill for nearby however most sellers are looking to net

$11.11 per cwt (about $245 per ton) fob farm.As for export bids, most looking to buy around

$10.00-$10.15 per cwt (about $220-$224 per ton) delivered river however there is zero sell

interest at that level.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Dragged Lower along with

Corn and Beans by Falling Crude; Wheat

Rallies as Traders Turn Attention to Lack of

Moisture

Mar 16, 2015

Chicago rough rice futures for May delivery settled 5.5 cents per cwt (about $1 per ton) lower at

$10.525 per cwt (about $232 per ton). The other grains closed lower except for wheat which

rallied as concerns grow over a lack of moisture in key growing regions; Soybeans closed about

0.5% lower at $9.6925 per bushel; wheat finished about 2.4% higher at $5.1400 per bushel, and

corn finished the day about 0.4% lower at $3.7900 per bushel.

U.S. stocks traded higher on Monday as investors eyed weakness in the dollar and oil prices

ahead of Wednesday's key Fed meeting. The U.S. dollar index fell nearly 1% on Monday to trade

below 100. The index gained nearly 3% in the last week as the euro dipped to 12-year lows

below $1.05. The Dow Jones industrial average briefly gained more than 200 points as all the

major indices advanced to trade in the black for the year.

The Federal Open Market Committee holds its March meeting over the next two days, with the

release of its statement on Wednesday. Investors are watching to see if the key word "patient"

remains in the statement, an indication of when short-term interest rates might go up. Before the

bell, the Empire State Index posted 6.90 for March, below February's 7.78. Industrial production

rose 0.1% in February, below expectations, with capacity utilization slightly lower at 78.9%.The

Dow Jones industrial average traded up 180 points, or 1.02%, at 17,929.

The S&P 500 traded up 20 points, or 1.00%, at 2,073, with utilities leading nine sectors higher

and materials the greatest laggard. The Nasdaq traded up 41 points, or 0.84%, at 4,912. Gold is

trading about 0.1% higher, crude oil is seen trading about 2.8% lower, and the U.S. dollar is seen

trading about 0.8% lower at about 1:00pm Chicago time.Friday, there were 270 contracts traded,


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down from 610 contracts traded on Thursday. Open interest – the number of contracts

outstanding – on Friday decreased by 1 contract to 8,978.

Global Rice Quotes

March 16th, 2015

Long grain white rice - high quality

Thailand 100% B grade 400-410 ↓

Vietnam 5% broken 365-375 ↔

India 5% broken 390-400 ↔

Pakistan 5% broken 345-355 ↓

Myanmar 5% broken 415-425 ↔

Cambodia 5% broken 425-435 ↔

U.S. 4% broken 480-490 ↔

Uruguay 5% broken 580-590 ↔

Argentina 5% broken 570-580 ↔

Long grain white rice - low quality

Thailand 25% broken 370-380 ↔


Pakistan 25% broken 310-320 ↓

Cambodia 25% broken 410-420 ↔

India 25% broken 360-370 ↔

U.S. 15% broken 470-480 ↔

Long grain parboiled rice


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Thailand parboiled 100% stxd 385-395 ↓

Pakistan parboiled 5% broken stxd 385-395 ↓

India parboiled 5% broken stxd 380-390 ↔

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% 895-905 ↔

Vietnam Jasmine 455-465 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 790-800 ↔

Brokens

Thailand A1 Super 320-330 ↔


Pakistan 100% broken stxd 280-290 ↓

Cambodia A1 Super 345-355 ↔

India 100% broken stxd 275-285 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 380-390 ↔

Brazil half grain NQ ↔

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


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Oryza Afternoon Recap - Chicago Rough

Rice Futures Dragged Lower along with

Corn and Beans by Falling Crude; Wheat

Rallies as Traders Turn Attention to Lack of

Moisture

Mar 16, 2015

Chicago rough rice futures for May delivery settled 5.5 cents per cwt (about $1 per ton) lower at

$10.525 per cwt (about $232 per ton). The other grains closed lower except for wheat which

rallied as concerns grow over a lack of moisture in key growing regions; Soybeans closed about

0.5% lower at $9.6925 per bushel; wheat finished about 2.4% higher at $5.1400 per bushel, and

corn finished the day about 0.4% lower at $3.7900 per bushel.U.S. stocks traded higher on

Monday as investors eyed weakness in the dollar and oil prices ahead of Wednesday's key Fed

meeting. The U.S. dollar index fell nearly 1% on Monday to trade below 100.

The index gained nearly 3% in the last week as the euro dipped to 12-year lows below $1.05.

The Dow Jones industrial average briefly gained more than 200 points as all the major indices

advanced to trade in the black for the year. The Federal Open Market Committee holds its March

meeting over the next two days, with the release of its statement on Wednesday. Investors are

watching to see if the key word "patient" remains in the statement, an indication of when short-

term interest rates might go up. Before the bell, the Empire State Index posted 6.90 for March,

below February's 7.78. Industrial production rose 0.1% in February, below expectations, with

capacity utilization slightly lower at 78.9%.

The Dow Jones industrial average traded up 180 points, or 1.02%, at 17,929. The S&P 500

traded up 20 points, or 1.00%, at 2,073, with utilities leading nine sectors higher and materials

the greatest laggard. The Nasdaq traded up 41 points, or 0.84%, at 4,912. Gold is trading about

0.1% higher, crude oil is seen trading about 2.8% lower, and the U.S. dollar is seen trading about

0.8% lower at about 1:00pm Chicago time.Friday, there were 270 contracts traded, down from

610 contracts traded on Thursday. Open interest – the number of contracts outstanding – on

Friday decreased by 1 contract to 8,978.

17th march,2015 daily exclusive oryza rice e newsletter by riceplus magazine

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