February 26, 2015

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com

Volume 5, Issue I
Daily Exclusive

ORYZA Rice
Newsletter

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com

EU Imports 442,433 Tons of Milled Rice from

Non-EU Nations in September 1, 2014 February 17, 2015; Up 2% from Last Year
Feb 25, 2015

Union (EU) has imported around 442,433 tons of milled rice from non-EU nations in September
1, 2014 - February 17, 2015, up about 2% from around 433,770 tons imported during the same
period last year, according to the EU data.The U.K remained the biggest buyer of non-EU rice
with 88,918 tons (accounting for about 20% of EU's total imports from the non-EU nations
during the September 1, 2014 - February 17, 2015 period). France imported 84,358 tons (19%),
Netherlands imported 63,138 tons (14%), Germany imported 36,188 tons (8%), Poland imported
28,496 tons (6%), Belgium imported 23,876 tons (5%) and Italy imported 21,022 tons
(5%) during the said period.
The EU milled Indica rice imports from non-EU nations increased slightly to around 238,155
tons during September 1, 2014 - February 17, 2015 from around 236,695 tons imported during
the same period in 2013-14 crop year. Most of the milled Indica rice was imported from the
Asian Least Developed Countries (LDCs) such as Cambodia and Myanmar under the Everything
But Arms (EBA) agreement. The EU imports of Japonica variety also increased slightly to
around 41,741 tons during the said period from around 41,104 tons imported last year.However,
the EU broken rice imports increased about 24% to around 187,250 tons in September 1, 2014 February 17, 2015 from around 150,613 tons imported during the same period in 2013-14.

Global Rice Quotes

February 26th, 2015
Long grain white rice - high quality
Thailand 100% B grade
415-425
Vietnam 5% broken 360-370

India 5% broken
390-400

Pakistan 5% broken 335-345

Myanmar 5% broken 410-420

Cambodia 5% broken 425-435

U.S. 4% broken
475-485

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
Uruguay 5% broken NQ
Argentina 5% broken NQ

Long grain white rice - low quality

Thailand 25% broken 365-375

Vietnam 25% broken 335-345

Pakistan 25% broken 305-315

Cambodia 25% broken

410-420
India 25% broken
355-365

U.S. 15% broken

465-475

Long grain parboiled rice

Thailand parboiled 100% stxd
405-415
Pakistan parboiled 5% broken stxd 385-395
India parboiled 5% broken stxd
385-395
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%
920-930
Vietnam Jasmine
445-455

India basmati 2% broken

NQ

Pakistan basmati 2% broken NQ

Cambodia Phka Mails

785-795
Brokens
Thailand A1 Super 320-330

Vietnam 100% broken

305-315
Pakistan 100% broken stxd 275-285
Cambodia A1 Super 345-355

India 100% broken stxd

280-290
Egypt medium grain brokens NQ

U.S. pet food 380-390

Brazil half grain

NQ

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

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com

Indonesia President Begins Rice Distribution

Operations
Feb 25, 2015

The Indonesian President Joko Widodo has formally

begun the operations for distributing Bulog rice in the
market in line with the government's decision to control
price hikes, according to local sources. The distribution
operations were formally launched at Bulog's Warehouse
in North Jakarta.The government has planned to distribute
over 300,000 tons of rice across the country at about
7,400 per kilogram (around $576 per ton).
The Trade Minister was quoted as saying that the government would initially distribute 1,600
tons of Bulog rice in Jakarta and its satellite towns of Bogor, Depok, Tangerang and Bekasi
(Jabodetabek).The President also simultaneously launched the rice distribution operations under
this year's Rice for the Poor (Raskin) program at around 1,600 Rupiah per kilogram (around
$125 per ton). The government will reportedly distribute 19,000 tons of rice through the Raskin
program by March this year. He noted that Bulog currently has 1.4 million tons of rice stocks
and they would be sufficient until the arrival of rice from the ongoing harvest in March and
April. He added that stocks would be sufficient despite a rise in demand.
Domestic rice prices have been surging since September 2014. According to data from the UN's
Food and Agricultural Organization (FAO), local rice prices currently stand at around 9.78
million Rupiah (around $761) per ton, up about 10% from around 8.93 million Rupiah (around
$750) per ton in September 2014, and up about 9% from their year ago levels.The government
has ruled out any immediate imports of rice ahead of the harvest season in March.

New Port Contract Brings Relief to

California Rice Sector
Feb 25, 2015

Problems between dock workers and terminal operators in the U.S. West Coast ports seems to be
over with the signing of a new contract signed by the dockworkers' union and the terminal
operators at 29 West Coast ports, including the Port of Oakland, in the beginning of this week,
4

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
according to local sources.It is certainly a good
news to the California rice exporters who have
been bearing huge losses due to delay in
shipments as well as cargos piled up on docks
during the month-long slowdown. California's rice
sector lost about half the regular volume of
exports in December and January, according to
the President and CEO of the California Rice
Commission. "The haemorrhaging has stopped
and now we can start to get healthy again," he was
quoted as saying. He added that actual losses cannot be calculated until the existing backlog of
shipments are settled.
Nearly 80% of the rice grown in California is medium-grain rice and is exported through the port
of West Sacramento and Oakland port to the countries in the south Pacific.California is the
second largest rice producing state in the U.S. after Arkansas, and contributes to around 2 million
tons of paddy rice annually or about 25% of the total rice grown in the U.S. The state's rice
sector employs about 25,000 people and most of rice grown here is exported.California rice
sector had been impacted by drought last year. The state's paddy rice acreage in 2014 had
declined to around 420,000 hectares, down about 25% from around 525,000 hectares planted in
2013 due to prolonged dry conditions and water shortages.

Lao PDR Plans to Strengthen Sanitary

Measures to Boost Rice Exports
Feb 25, 2015

The government of Lao Peoples Democratic Republic (PDR) is planning to strengthen sanitary
and phyto-sanitary measures as part of efforts to boost rice exports, according to a notice on the
government web portal.Laos is almost self-sufficient in rice production and consumes almost all
of the output domestically. The South East Asian nation exports about 300,000 tons of rice
annually to Vietnam, Thailand and China.
But the government is keen on boosting rice exports by increasing production. It is planning to
increase the paddy rice production by about 70% y/y to around 4.2 million tons (around 2.65
million tons, basis milled) in 2015.In line with its targets, the government is stepping up efforts
to increase awareness about sanitary and phyto-sanitary issues among the rice producers and
millers. The Ministry of Agriculture hosted a knowledge dissemination meeting last week to
5

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
apprise the exporters and producers the demands of various trade partners over the sanitary and
phyto-sanitary measures.The Vice Minister of Agricultural and Forestry told rice stakeholders
that the government has signed agricultural and crop production agreements with Thailand,
Vietnam and China, and according to the agreements, Laos needs to follow the conditions of
food safety and plant sanitary measures.
He also noted that the
government has signed a rice
export contract with China,
which includes an agreement on
phyto-sanitary measures. He
said
China
wants
the
government to follow the
standards of the WTO with
regard to protocols of bio-safety
and Sanitary and Phyto-Sanitary
measures (SPS Protocol). He
added that the agreement
specifically focuses on the
phytosanitary
and
pest
management measures required, the methods of processing, packaging, transport and other
important measures. Earlier, the Vice-Minister noted that there is huge demand for Laos sticky
rice among the Chinese. USDA estimates Laos to produce around 1.55 million tons of milled
rice (around 2.46 million tons, basis paddy) in MY 2014-15 (January 2015 - December 2015)
and import around 10,000 tons of rice to meet consumption needs of around 1.58 million tons.

Oryza Afternoon Recap Chicago Rough

Rice Futures Recover from Early Losses but
off of Session Highs as Rallying Crude
Weighs on Grain Prices
Feb 25, 2015

Chicago rough rice futures for May delivery settled 6 cents per cwt (about $1 per ton) higher at
$10.770 per cwt (about $237 per ton). After falling overnight and into the morning session rough
rice futures made a big rally during mid-day trading. However, the buying interest quickly

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
subsided and prices drifted much closer to the unchanged line during afternoon trading. Despite
prices closing off of the highs the fact that they did manage to hold out for a gain despite
bearishness in the other grains is seen as a positive sign for the market. Traders will now focus
on yesterdays settlement price of $10.710 per cwt (about $236 per ton) as a key signal of future
trade direction.
A higher close tomorrow will complete an outside up pattern and signal that the recent
bearishness is indeed over and that a recover is underway, likely triggering additional buying. On
a move higher traders will keep an eye on the recent high of $11.160 per cwt (about $246 per
ton) as a key point of resistance. The other grains finished lower but off of session lows;
soybeans closed about 0.8% lower at $10.1075 per bushel; wheat finished about 1.3% lower at
$4.9725 per bushel, and corn finished the day about 0.5% lower at $3.8375 per bushel.U.S.
stocks traded mostly higher on Wednesday after closing at records on Tuesday, amid firming oil
prices, moderate housing data and no news out of Fed Chair Janet Yellen's second congressional
testimony.
Yellen's remarks to the Senate on Tuesday were mostly dovish but added little weight on either
side to analyst expectations on the timing of an interest rate hike. The Fed chair repeated the
remarks on Wednesday in front of the House Financial Services Committee. Stocks were little
changed after morning housing data and earnings. New U.S. single-family home sales in January
fell a less-than-expected 0.2% to 481,000 and supply rose to its highest level since 2010, hopeful
signs for the sluggish housing market.
The U.S. Energy Information Administration reported that weekly crude inventories rose 8.4
million barrels, more than expected. The figures were in-line with Tuesday's American
Petroleum Institute report of 8.9 million barrels. The Dow Jones Industrial Average traded up 14
points, or 0.08%, to 18,224. The S&P 500 traded up 0.56 points, or 0.03%, to 2,116, with
consumer discretionary leading four sectors higher and utilities the greatest laggard. The Nasdaq
gained 8 points, or 0.16%, to 4,976. Gold is trading about 0.4% higher, crude oil is seen trading
about 2% higher, and the U.S. dollar is seen trading about 0.2% lower at about 1:00pm Chicago
time.Tuesday, there were 1,505 contracts traded, down from 1,053 contracts traded on Monday.
Open interest the number of contracts outstanding on Tuesday increased by 132 contracts to
9,180.

Myanmar Signs 100,000 Ton Rice Export

Contract with China
Feb 26, 2015

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com

The Myanmar Rice Federation (MRF) has signed

a contract with the China's state run China
National
Cereals,
Oils
and
Foodstuffs
Corporation (COFCO) to export 100,000 tons of
rice to China is separate monthly shipments in
accordance with market prices at the time of
shipment, local sources quoted an official from
the (MRF) was quoted as saying. According to
the Joint Secretary of the MRF, It has been agreed
to export rice in separate monthly shipments at
the prevailing prices at the time of shipment to
ensure a fair trade for both parties. He also noted
that the Myanmar rice exporters do not have enough capacity to export all 100,000 tons of rice at
one go. Officials from the MRF have been working to sign this contract for last few months in
order to legalize rice exports to China.
Initially nine companies were shortlisted to export rice to China but the number is likely to go up
as China sought increase in the number of exporters.According to the agreement, rice exporters
should get their rice inspected and accredited with the China's General Administration of Quality
Supervision, Inspection and Quarantine (AQSIQ) and then seek approval from the China
Certification and Inspection Group before exporting rice to China.The MRF Joint Secretary
noted that they would begin exporting rice to China from April. He noted that the MRF is taking
all measures to meet the quality and variety standards in accordance with China's specifications.
Currently export prices of Myanmar 5% broken rice is quoted at around $415 per ton and 25%
broken rice is quoted at around $325 per ton.Around 1.1 million tons of rice have been exported
in the first nine months of 2014-15, of which 800,000 tons comprise of exports to China through
the borders. The Myanmar government is targeting to export around 2.5 million tons of rice in
FY 2015-16 (April - March), up about 67% from an estimated 1.5 million tons in FY 201415.USDA estimates Myanmar to produce 18.98 million tons of paddy rice (around 12.15 million
tons, milled basis) and export around 1.4 million tons of rice in MY 2014-15 (January December 2015).

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com

Oryza U.S. Rough Rice Recap Unchanged

Market as Snowy Weather Hampers
Movement of Rice
Feb 25, 2015

The U.S. cash market was unchanged today with little trading to report as most buyer and seller
price ideas are roughly $0.50-$1.00 per cwt (about $11-$22 per ton).Icy and snowy weather
continues to hamper movement of rice in the U.S. mid-South causing a headache for some
farmers, mills, and exporters however forecasts are expected to improve by the
weekend.Analysts note that farmers are beginning to make preparations for next years crop
however some believe that rice is losing favor with farmers as the softer prices currently seen are
at or below their cost of production

Oryza Overnight Recap Chicago Rough

Rice Futures Sharply Lower Overnight as
Other Grains Turn Bearish
Feb 25, 2015

Chicago rough rice futures for May delivery are currently listed 14 cents per cwt (about $3 per
ton) lower at $10.570 per cwt (about $233 per ton) ahead of floor trading in Chicago. The other
grains are seen trading lower this morning: soybeans are currently seen about 0.4% lower, wheat
is listed about 0.5% lower and corn is currently noted about 0.3% lower.U.S. stock index futures
signaled a flat open on Wednesday as investors digested comments from Federal Reserve Chair
Janet Yellen's speech to Congress which hinted that the central bank was not in a rush to hike
interest rates.
Yellen is set to continue her testimony on Wednesday in front of the House Financial Services
Committee, as new home sales figures for January are due, both at 10.00 a.m. ET. Mortgage
applications to purchase a home rose 5% on a seasonally adjusted basis for the week ending Feb.
20 from the previous week, according to the Mortgage Bankers Association (MBA). Existing
home sales for January reported on Monday slumped to the lowest level in nine months amid a
shortage of properties in the market. Investors will also watch oil inventories at 10:30 a.m. ET
from the U.S. Energy Information Administration for signals on supply build-up. Gold is
9

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
currently trading about 0.7% higher, crude oil is seen trading about 0.3% higher, and the U.S.
dollar is currently trading about 0.2% lower at 8:00am Chicago time.

Asia Rice Quotes Unchanged Today

Feb 25, 2015

Asia rice sellers kept their quotes unchanged today.

5% Broken Rice
Thailand 5% rice is quoted at around $405 - $415 per ton, about $50 per ton premium on
Vietnam 5% rice shown at around $355 - $365 per ton. India 5% rice is quoted at around $390 $400 per ton, about $55 per ton premium on Pakistan 5% rice quoted at around $335 - $345 per
ton.
25% Broken Rice
Thailand 25% rice is quoted at around $365 - $375 per ton, about $40 per ton premium on
Vietnam 25% rice shown at around $325- $335 per ton. India 25% rice is quoted at around $355
- $365, about $50 per ton premium on Pakistan 25% rice quoted at around $305 - $315 per ton.
Parboiled Rice
Thailand parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice is quoted at
around $385 - $395 per ton, on par with Pakistan parboiled rice quoted at around $385 - $395 per
ton.
100% Broken Rice
Thailand broken rice, A1 Super, is quoted at around $320 - $330 per ton, about $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 $280 - $290 per ton, about $5 per ton premium on Pakistan
broken sortexed rice quoted at around $275 - $285 per ton.

10