30th june (tuesday),2015 daily exclusive oryza e rice newsletter by riceplus magazine

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June 30 ,2015




Liberia Extends Suspension of Tariffs on

Rice Imports to Rein in Price Hikes

Jun 29, 2015

The government of Liberia has issued Executive Order No. 70 extending Executive Order No.

61, which suspends tariffs on rice imports, according to a news release on the government

website.The order, issued by the President on June 28, states that: "the Government of Liberia in

its desire to continue bringing relief to the public, is extending Executive Order No. 61,

suspending the import tariff on rice as classified under tariff Nos. 1006.30.00 (in packing of

more than 5kg or in bulk); 1006.30.00 (in packing of at least 5kg); and 1006.40.00 (broken rice)

under the Revenue Code of Liberia Act 2000." The Executive Order is said to be implemented

with immediate effect.

The news release says the extension of the Executive Order No. 61 is based on the findings of a

government assessment and evaluation of the causes of increases in the prices of various

strategic commodities. The government has recognized the need to curb the continuous increases

in the price of rice and make it affordable to the public.




The order also states that: "there exists a need for exigent measures to achieve the desired

objective of easing the economic burden on the people of this country to enable access to the

staple food, and such measures cannot await long processes."The government earlier suspended

tariffs on rice imports through Executive Order Nos. 11, 19, 45 and 61 in the interest of public

According to latest data available with the FAO, in February this year, retail prices of imported

rice in the country's capital city stood at around 59,500 Liberian Dollar per ton (around $701 per

ton), up about 21% from their year-ago levels.Liberia produces only one third of the rice needed

for local consumption and imports the rest. The FAO estimates Liberia to import around 350,000

tons in 2015, while the USDA estimates the west African nation to import around 300,000 tons.

Average annual consumption of the country is around 450,000 tons, according to USDA.

Inadequate Infrastructure, Less Financing

Options and Labor Migration Undermining

Cambodia's Rice Export Capability, Say

Experts

Jun 29, 2015

Inadequate milling and storage facilities; meagre financing options and consequent bankruptcies

among small farmers; as well as recent migration of a number of male farmers to Thailand are all

undermining Cambodia's capability to increase its exports, local sources quoted experts as

saying.They noted that above factors are not allowing the country to achieve the one million tons

export this year. The country is not in a position to take advantage of the increasing demand from

China and the European Union due to these reasons. They added that the Cambodian exporters

are facing a stiff competition with Thailand and Vietnam rice exporters in terms of pricing as

they are in a position to lower prices they have better techniques and skills as well as government

support.

The experts also said that currently, Cambodia's rice surplus is not so high to increase exports.

Therefore they are urging the government to help farmers to increase production beyond the

sufficiency needs in order to be able to boost exports as well.A former Senior Adviser to the

Cambodia Rice Federation (CRF) noted that lesser financing options and high interest rates in

the country have forced many Cambodian farmers to flee to Thailand for jobs in attempt to avoid




paying arrears to micro finance institutions.

They say a silent crisis is going on in Cambodian rice fields, which is not in the interest of the

country. They warned that the country's rice sector cannot thrive if the government follows a

hands off "laissez faire policy".Meanwhile this year's production is likely to be impacted by dry

weather conditions and low rainfall across the rice growing regions.Cambodia exported about

243,025 tons of rice in the first five months of 2015 (January - May 2015), up about 64% from

about 148,262 tons rice exported in the same period last year according to the Secretariat of One

Window Service for Rice Export. Cambodia has exported about 387,100 tons of rice in

2014.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.

India Average Wholesale Rice Prices Decline

Sharply in June 2015

Jun 29, 2015




India average wholesale rice prices declined sharply in June 2015 after continuously increasing

for three consecutive months from March to May. The decline can be attributed to increasing

supplies in the domestic market due to a declining export demand.Planting for India's

main/kharif rice crop (June – December), which began last month, has been good enough

throughout the month of June due to above-average rains recorded in most of the rice-growing

regions. However, as of June 26, the total planted area at around 2.328 million hectares slightly

lagged by about 7% from last year.Average monthly wholesale rice prices in India declined to

around Rs.2,657.50 per quintal in June 2015, down about 8% from around Rs.2,903.67 per

quintal in May 2015, and down about 8% from their year-ago levels of around Rs.2,901.95 per

quintal.

In terms of USD per ton, wholesale rice prices in India stand at around $419 per ton (using

current exchange rates) in June 2015, up about 8% from around $455 per ton (using historical

exchange rates) in May 2015, and down about 13% from around $483 per ton (using historical

exchange rates) in June 2014. India’s average prices are likely to increase if India’s production

is dampened by a moderate drought-inducing El Nino weather pattern, which is expected to




persist between July and September. Weather bureaus in Australia and Japan are forecasting an

intensifying El Nino weather pattern, which is already causing dry conditions in South East

Asian countries, including Thailand, North Korea, Indonesia and the Philippines.

The government of India is monitoring the impact of El Nino on monsoon rains in the country,

which have been so far unaffected by the phenomenon. USDA estimates India's 2015-16

(October - September) production at around 104 million tons, up about 1.5% from an estimated

102.5 million tons in 2014-15. It estimates India's 2015 rice exports at around 10.2 million tons,

slightly up from an estimated 10.15 million tons in 2014.

India Basmati Rice Growers Advised to Plant

Pusa 1509 After July 15 to Avoid Breakage

Jun 29, 2015

Farmers in India's two main basmati rice growing states Punjab and Haryana have been advised

to plant Pusa basmati 1509 variety after July 15 to avoid incidence of breakage, according to

local sources.Government officials noted that since transplanting of basmati 1509 seeds before




July 15 is said to lead to a high incidence of broken content and moisture content during milling,

the two state governments are carrying out a campaign to educate farmers about the ill-effects of

early transplanting the seeds. Rice exporters have been complaining of low or no acceptability in

the export market if there is higher content of brokens and moisture in the seeds.

One of the leading basmati rice exporters that they had faced huge losses during the last season

due to this reason. "We want that crop should be sown after July 15, which should be ready by

October," he was quoted as saying.Basmati 1509, which has been developed by the Indian

Agricultural Research Institute (IARI), is popular among the farmers of both Punjab and Haryana

for its high yield and short duration.The IARI Principal Scientist said: "We have always been

saying that transplantation of 1509 variety should start from July 20 onwards and it can be

transplanted till August 10. Then it will have good aroma and will have no broken rice issue."

About 300,000 hectares in Punjab and about 250,000 hectares in Haryana were used to plant

basmati 1509 variety last year.Total basmati area in Punjab is about 800,000 hectares and

600,000 hectares in Punjab and Haryana respectively. Punjab and Haryana have targeted 2.65

million hectares and 1.2 million hectares under paddy for current Kharif season.

Global Rice Quotes

June 29th, 2015

Long grain white rice - high quality

Thailand 100% B grade 375-385 ↔

Vietnam 5% broken 350-360 ↑

India 5% broken 385-395 ↔

Pakistan 5% broken 375-385 ↔

Myanmar 5% broken 415-425 ↔

Cambodia 5% broken NQ ↔

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 345-355 ↔

Vietnam 25% broken 330-340 ↑

Pakistan 25% broken 335-345 ↔

Cambodia 25% broken NQ ↔

India 25% broken 350-360 ↔

U.S. 15% broken 440-450 ↔




Long grain parboiled rice

Thailand parboiled 100% stxd 365-375 ↔

Pakistan parboiled 5% broken stxd 395-405 ↔

India parboiled 5% broken stxd 360-370 ↓

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% 815-825 ↔

Vietnam Jasmine 475-485 ↓

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails NQ ↔

Brokens

Thailand A1 Super 315-325 ↔

Vietnam 100% broken 310-320 ↔

Pakistan 100% broken stxd 290-300 ↓

Cambodia A1 Super NQ ↔

India 100% broken stxd 280-290 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 350-360 ↔

Brazil half grain NQ ↔

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

Myanmar to Boost Aromatic Rice Exports to

Singapore, U.S.

Jun 29, 2015

Myanmar is planning to increase aromatic rice exports to Singapore and the U.S., Xinhua News

Agency quoted sources from the Myanmar Rice Federation (MRF).The country produces both

short and long-term aromatic rice varieties, according to the MRF. It produces two types of

fragrant rice - Lone Thwal Hmwe and Paw San.The country is particularly planning to increase

exports of the aromatic rice variety Paw San, which is grown in limited quantities in the regions

of Ayeyawady Delta, Bago and some parts of Sagaing Regions in monsoon, said the MRF

sources. Last year, Myanmar exported 20 tons of Paw San rice to the U.S.




In June, a delegation from the European Union (EU) visited Myanmar to discuss the country's

ability to export fragrant rice to the EU in the mid- to long-term. The General Secretary of the

MRF reportedly told the delegation that Myanmar can grow both short and long grain aromatic

rice through the contract farming system and can meet the EU demand. The MRF Vice-

Chairman told local sources that aromatic rice farmers should be encouraged to increase

production of Paw San in the light of increased export demand.

He noted that farmers usually don't show interest in exporting Paw San as it fetches a good price

locally itself. The export price of Paw San is currently in the range of $900 per ton.Myanmar's

rice exports have been increasing consistently for the last three years, according to the Ministry

of Commerce. Myanmar exported about 1.7 million tons of rice in FY 2014-15, about 1.2 million

tons of rice in FY 2013-14 and about 1.4 million tons of rice in FY 2012-13.The government is

keen on increasing rice exports to around 3 million tons over the next few years and has

prioritized rice in its National Export Strategy (NES), which it launched earlier this year.




Laos Rice Production May Decline Due to

Dry Weather in Upland Areas, Flash Floods

in North-East

Jun 29, 2015

Laos rice production is likely to decline this year due to two simultaneous and contradicting

weather patterns in the country, Xinhua News Agency quoted the state run Vientiane Times.Dry

weather conditions and less rainfall are disrupting planting preparations in the country's upland

areas. Many farmers are understood to have postponed their planting operations with hope of

receiving rains soon. If this situation persists, rice output may decline thereby pushing up local

prices.On the other hand, unprecedented flash floods in the country's north-east Huaphan

province due to heavy rains last week are understood to have damaged several hectares of paddy

fields.

In the prior week a grasshopper plague reportedly affected crops in the northern province of

Luang Prabang.Considering the present weather conditions, the country's paddy production is




expected to fall below estimated 4.2 million tons, according to local sources. The unforeseen

development is likely to spoil plans of Laos to increase rice production and begin exports this

year.The UN's FAO estimates Laos 2015 paddy rice production to increase about 3% y/y to

around 3.4 million tons. USDA estimates Laos 2015 paddy production to decline about 4% y/y

to around 2.5 million tons in 2015.

Thai Government Encourages Farmers to

Purchase Main Rice-Crop Insurance to

Contain Drought-Related Losses

Jun 29, 2015

The government of Thailand is encouraging farmers to buy main rice-crop insurance to reduce

losses from harvest failure caused by natural disasters, according to local sources.Especially in

the light of ongoing drought conditions, the government has announced that it would subsidize

the farmers' premiums up to 80%. Last year farmers in around 112,000 hectares purchased main

rice-crop insurance. This year, the government is expecting around 240,000 hectares to be




insured this year. About seven insurers are offering main rice-crop insurance through the Bank

for Agriculture and Agricultural Cooperatives (BAAC) between May 6 - August 14, 2015,

according to the President of the Thai General Insurance Association (TGIA).

He noted that the IGIA would request the National Catastrophe Insurance Fund to reinsure some

main rice-crop insurance to support local insurers and encourage more farmers to insure their

crops.Separately, the BAAC announced that it would suspend interest and principal payments for

drought-hit farmers.In this backdrop, the honorary president of the Thai Rice Exporters

Association (TREA) told local sources that rice prices, which have been declining for the last

few months are likely to increase due to drought.

He noted that the production levels in India and China would mainly dictate rise in global rice

prices. The trend would be evident by August, when they start harvesting their crops.As for Thai

rice, he said increased demand for parboiled rice from Nigeria and Benin prompted higher

exported in May. He also noted that winning the upcoming 250,000 rice import tender by the

Philippines is important for Thailand. The Philippines is yet to announce the timing of the

tender.Meanwhile, the Commerce Ministry is planning to meet with rice exporters, millers and

traders to discuss about the falling domestic rice prices.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Tumble as Market Lacks

Buying Interest as Market Eyes Large

Carryover; Wheat Continues to Add Weather

Premium

Jun 29, 2015

Chicago rough rice futures for Sep delivery settled 16 cent per cwt (about $4 per ton) lower at

$10.085 per cwt (about $222 per ton). The other grains finished the day with mixed results with

the only component to make a distinct move being wheat, which continues to add to recent gains;

Soybeans closed about 0.6% lower at $9.8000 per bushel; wheat finished about 2.7% higher at

$5.8350 per bushel, and corn finished the day about 0.1% higher at $4.0225 per bushel.U.S.

stocks fell more than 1.5% on Monday, following a decline in global markets on the escalating




Greece debt crisis. S&P downgraded Greece to "CCC-" and said in a Reuters report that the

probability of the country exiting the euro zone is now about 50%. Earlier, a Greek official told

Reuters in midday trade ET that the country will not pay its loan due to the International

Monetary Fund on Tuesday.

In addition to capital controls in Greece, Puerto Rico's governor said the commonwealth cannot

pay its debt of about $72 billion. Mainland Chinese markets entered bear market territory, with

the Shanghai Composite closing 3.3% lower on Monday despite initial attempts at gains

following the central bank's rate cut over the weekend. Concerns over Greece hit global markets

hard, with stocks in France and Germany closing more than 3% lower. Asian stocks also fell

overnight, with Japan's Nikkei off 2.9%. The Dow Jones Industrial Average traded down 236

points, or 1.32%, at 17,709. The Dow transports traded more than 1% lower. The S&P 500

traded down 29 points, or 1.38%, at 2,072, with financials leading nine sectors lower and utilities

the only advancer. The Nasdaq traded down 79 points, or 1.55%, at 5,001. Gold is trading about

0.5% higher, crude oil is seen trading about 2.2% lower, and the U.S. dollar is seen trading at

about 0.7% lower at about 1:00pm Chicago time.Friday, there were 2,198 contracts traded, up

from 1,703 contracts traded on Thursday. Open interest – the number of contracts outstanding –

on Friday decreased by 222 contracts to 9,711.

Thai Supreme Court Begins Trial Against 21

Individuals in G2G Rice Case; 19 Plead

Innocence

Jun 29, 2015

The Criminal Division for Holders of Political Officers of

Thailand's Supreme Court has begun trial against 21

individuals, including the former Commerce Minister and

the former Deputy Commerce Minister, former Director-

General of the Department of Foreign Trade, three civil

servants and 15 others, for their alleged corruption in

government-to-government (G2G) rice deals with two

Chinese companies, according to local sources.The Office

of the Attorney-General (OAG) filed the charges against

the 21 individuals based on the advice of the National Anti-Corruption Commission (NACC),




which assured that there was adequate evidence to bring the case to trial.The NACC earlier noted

that the accused 21 persons apparently helped two Chinese companies, which were reportedly

not authorized by the Chinese government, to seal G2G contracts for about 1.2 million tons of

rice with the Thai government without participating in a bid. They are said to have violated the

Criminal Code, the Public Competitive Bidding Act and the Anti-Corruption Act.If found guilty,

the 21 individuals, including the former Commerce Minister, may face life imprisonments as

well as a fine of up to 35.2 billion baht (around $1.1 million).

The Supreme Court had granted bail to the former Commerce Minister in the present case at 20

million baht (around $593,190) and barred him from leaving the country without its

permission.Former Commerce Minister and 18 other accused have reportedly pleaded innocence

in the G2G rice case. They have been allowed to submit a written tesimony to the court by

August 31 and the Court is to examine the evidences on September 29, 2015.

Rice During January 1 – June 25, 2015

Jun 29, 2015

Vietnam exported about 2.45 million tons of rice in January 1 - June 25, 2015, down about 19%




from about 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 about

$419 per ton (FOB), down about 3% per ton from about $431 per ton recorded during same last

year.

During June 1-25, 2015, Vietnam exported about 368,547 tons of rice, down about 45% from

about 671,174 tons rice exported in full month of June 2014, and down about 30% from about

525,742 tons rice exported in full month of May 2015. Average export prices in so far in June

stands at about $412 per ton, down about 3% per ton from a year and a month ago.

Thailand Expects Greater Interest for Fourth

Rice Auction in First Week of July 2015

Jun 29, 2015

The government of Thailand is expecting a greater

interest from private bidders for the fourth rice auction

that has been planned on July 7, according to local

sources.The Deputy Director-General of the Foreign

Trade Department told local sources that they are

expecting a good response in the fourth auction based

on the sales in the third auction, in which the Ministry

auctioned about 1.06 million tons of rice and sold

about 840,000 tons (about 80% of auctioned rice).

“Demand in the rice markets remains high. So the auction comes at the right time and it seems to

have no negative impact on the whole rice market," she was quoted as saying.The Commerce

Ministry is putting up around 1.39 million tons of rice consisting of 14 types of rice from 156

government stockpiles, 107 warehouses under the Public Warehouse Organization (PWO) and

49 Marketing Organization for Farmers warehouses in 32 provinces across the country.The

Commerce Ministry sold about 2.94 million tons of rice in the first seven auctions since it took

power, raising about 30.2 billion baht (around $894 million).The Thai military government

currently holds over 16 million tons of rice in its warehouses and is planning to sell about 10

million tons this year about six million tons next year.




Vietnam Rice Quotes Mixed Today; India,

Pakistan Rice Sellers Lower Some of Their

Quotes Jun 29, 2015

Vietnam rice sellers increased their quotes for 5% broken rice and 25% broken rice by about $5

per ton each to around $350-$360 per ton and $330 - $340 per ton respectively; and lowered

their quotes for Jasmine rice by about $5 per ton to around $475-$485 per ton today. India rice

sellers lowered their quotes for parboiled rice by about $5 per ton to around $360-$370 per ton.

Pakistan rice sellers lowered their quotes for 100% broken rice by about $5 per ton to around

$290-$300 per ton today. Thailand rice sellers kept their quotes mostly unchanged

today.

5% Broken Rice Thailand 5% rice is indicated at around $365 - $375 per ton, about a $15 per ton premium on

Vietnam 5% rice shown at around $350 - $360 per ton, up about a $5 per ton from Friday. India

5% rice is indicated at around $385 - $395 per ton, about $10 per ton premium on Pakistan 5%

rice shown at around $375 - $385 per ton.

25% Broken Rice Thailand 25% rice is shown at around $345 - $350 per ton, about a $15 per ton premium on

Vietnam 25% rice shown at around $330- $340 per ton, up about a $5 per ton from Friday. India

25% rice is indicated at around $350 - $360, about $15 per ton premium on Pakistan 25% rice

shown at around $335 - $345 per ton.

Parboiled Rice Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice is

indicated at around $360 - $370 per ton, down about a $5 per ton from Friday and about a $35

per ton discount to Pakistan parboiled rice shown at around $395 - $405 per

ton.

100% Broken Rice Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, about $5 per ton

premium on Vietnam 100% broken rice shown at around $310 - $320 per ton. India's 100%

broken rice is shown at around $280 - $290 per ton, about a $10 per ton discount to Pakistan

broken sortexed rice shown at around $290 - $300 per ton, down about a $5 per ton from Friday.

30th june (tuesday),2015 daily exclusive oryza e rice newsletter by riceplus magazine

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