Daily Exclusive ORYZA Rice E-Newsletter

March 17,2016
Vol 7,Issue III

www.ricepluss.com

www.riceplusmagazine.blogspot.com

Daily Exclusive ORYZA Rice E-Newsletter

Brunei Developing High-Yielding Varieties to

Achieve Rice Self-Sufficiency
Mar 16, 2016

The government of Brunei is working on the development of high-yielding rice varieties that can
produce about 12 tons per hectare to achieve self-sufficiency in rice production, according to
Brunei Times.
The Minister of Primary Resources and Tourism reportedly told in the 12th Legislative Council
(LegCo) meeting that research will be conducted to identify and develop such varieties. The
government is planning to introduce them to farmers by 2019.
Responding to a member's question on the governments assistance to farmers in the country's
main rice growing areas, the Minister noted that the Department of Agriculture and Agrifood
(DAA) has helped farmers get fertilisers, pesticides and machinery to plant Pusu, Bario, Adan
and Laila rice varieties. He noted that DAA also conducted research on the viability of planting a
hybrid rice variety BDR5 (Brunei Darussalam Rice 5), which is a high-yielding, low maturity
variety.
The Minister noted that the government has been encouraging farmers to use modern machinery
but soil in many rice growing areas is not suitable to use such machinery.
The government has been aiming for 60% self-sufficiency in rice production by 2015. Last year,
the Deputy Permanent Secretary at the Ministry of Industry and Primary Resources (MIPR)
apprised the Parliament that the government is far from achieving the target due to poor
irrigation infrastructure. However, the government has intensified efforts to increase rice
production, including incentive schemes such as the buy-back programme, infrastructure
development and the adoption of advanced production technologies to boost yields and overall
productivity, according to the official.
Brunei produces only 2% of the nations domestic annual rice consumption of around 40,000
tons. Bruneis rice production has remained at around 1,000 tons since 2002, according to the
USDA. The U.S. agency estimates Brunei to produce 1,000 tons of milled rice and import
around 40,000 tons in 2016, to meet a consumption demand of around 41,000 tons.

Global Rice Quotes

March 17th, 2016
Long grain white rice - high quality
Thailand 100% B grade
380-390
Vietnam 5% broken 375-385

India 5% broken
365-375

Daily Exclusive ORYZA Rice E-Newsletter

Pakistan 5% broken 335-345

Myanmar 5% broken 420-430

Cambodia 5% broken 410-420

U.S. 4% broken
440-450

Uruguay 5% broken 445-455

Argentina 5% broken 435-445

Long grain white rice - low quality

Thailand 25% broken 355-365

Vietnam 25% broken 355-365

Pakistan 25% broken 305-315

Cambodia 25% broken

395-405

India 25% broken

335-345

U.S. 15% broken (sacked) 460-470

Long grain parboiled rice

Thailand parboiled 100% stxd
375-385
Pakistan parboiled 5% broken stxd NQ

India parboiled 5% broken stxd

350-360
U.S. parboiled 4% broken
480-490

Brazil parboiled 5% broken 520-530

Uruguay parboiled 5% broken

NQ

Long grain fragrant rice

Thailand Hommali 92%
670-680

Vietnam Jasmine
460-470

India basmati 2% broken

NQ

Pakistan basmati 2% broken NQ

Cambodia Phka Mails

755-765

Brokens
Thailand A1 Super 335-345

Vietnam 100% broken

345-355

Pakistan 100% broken stxd 285-295

Cambodia A1 Super 335-345

India 100% broken stxd

265-275

Egypt medium grain brokens NQ

U.S. pet food 280-290

Brazil half grain

NQ

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

Bangladesh Misses 2015-16 Aman Rice

Procurement Target by 6,000 Tons
Mar 16, 2016

Daily Exclusive ORYZA Rice E-Newsletter

The government of Bangladesh procured only 194,000 tons of 2015-16 Aman (July - December)
rice against the targeted 200,000 tons, reports the Financial Express citing the Bangladesh
Sangbad Sangstha (BSS).
The Bangladesh government targeted to procure 200,000 tons of 2015-16 Aman rice from
millers between December 15, 2015 and March 15, 2016 at Tk 31 per kilogram (around $388.5
per ton). The decline in procurement can be attributed to a temporary increase in milled rice in
most of the country's markets in early March following a hike in prices at the mill-gates. Coarse
rice prices were in the range of Tk 30 - 33 per kilogram (around $392 - $430 per ton). Therefore,
traders noted that millers found it more profitable to sell in markets rather than to the
government.
The Director (procurement division) of the Department of Food noted that the government hoped
to achieve the target within the slated timeframe given the higher procurement price. He also
noted that they also hoped the higher procurement price would encourage farmers plant more
rice in the next season.
Earlier, the Food Minister noted that the production cost of 2015 Aman paddy is estimated at
around Tk 18.5 per kilogram (around $232 per ton) and that of milled rice is estimated at around
Tk 28.5 per kilogram (around $357 per ton).
The government procured 320,000 tons of 2014-15 Aman rice from millers at around Tk 32 per
kilogram (around $401), according to data from the Food Ministry. Aman rice crop accounts for
about 38% of the total rice production in Bangladesh.
The Food and Agriculture Organization (FAO) estimates paddy rice output from the 2015 Aman
rice crop at about 19.6 million tons, down about 1% from last year due to a decline of about 2%
in acreage reflecting low domestic prices at sowing time. USDA forecasts Bangladeshs MY
2015-16 (July 2015 June 2016) milled rice production at around 34.6 million tons, slightly up
from an estimated 34.5 million tons in MY 2014-15. It forecasts Bangladesh to import around
600,000 tons of rice in MY 2015-16 from an estimated 1.2 million tons in MY 2014-15.

Vietnam Rice Quotes Mixed Today; Other

Asia Rice Quotes Unchanged
Mar 16, 2016

Vietnam rice sellers lowered their quotes for 25% broken rice by about $5 per ton to around
$355-$365 per ton and increased their quotes for Jasmine rice by about $15 per ton to around
$460-$470 per ton today . Other Asia rice sellers kept their quotes unchanged
today.
5% Broken Rice

Daily Exclusive ORYZA Rice E-Newsletter

Thailand 5% rice is indicated at around $365 - $375 per ton, about $10 per ton discount to
Vietnam 5% rice shown at around $375 - $385 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, on par with Vietnam 25% rice
shown at around $355- $365 per ton. India 25% rice is indicated at around $330- $340 per ton,
about $25 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 $15 per ton
discount to Vietnam 100% broken rice shown at around $345 - $355 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.

USDA Post Forecasts Egypt MY 2015-16 Rice

Exports at 250,000 Tons, Unchanged from
Previous Year
The USDA Post forecasts Egypt's MY 2015-16 (October - September) rice exports at around
250,000 tons, unchanged from the previous year, but down from the USDA's official estimates of
around 400,000 tons. Egypts rice is not internationally competitive under the current
government policy, which requires rice exporters to pay export tax of about LE 2,000 (around
$256) per ton of rice.
The Post reports that shortages in foreign currency and a parallel market charging an exchange
rate of 20% above the official rate, has proved too onerous for the rice millers and exporters. The
Post also reports that the government may extend the export window to August 2016 and may
ease its requirements due to increasing stocks. However, this may happen only after the
government ensures that it has sufficient supply for its smart card subsidy program.
The USDA Post forecasts Egypt's MY 2015-16 milled rice production at 4 million tons, down
from last year's 4.53 million tons, but unchanged from USDA's official estimates. However, the
Post has lowered its forecasts for Egypt's MY 2015-16 rice area below the USDA's official
5

Daily Exclusive ORYZA Rice E-Newsletter

estimates.

The Post forecasts Egypt's MY 2015-16 rice consumption at around 3.5 million tons, down from
around 4 million tons last year and down from USDA's official estimates of around 4 million
tons due to shortages of rice supplies in the governments subsidy program.
The USDA Post forecasts rice stocks to increase about 31% y/y to around 1.2 million tons during
the year as many traders are hoarding stocks in expectation of high prices.

Indonesian Rice Farmers Hope to Benefit

from Crop Insurance Scheme Amid Drought
Mar 16, 2016

Rice farmers in Indonesia's main rice growing area Bali are hoping to benefit from the province's
crop insurance program, which was launched in October 2015, to protect farmers from crop
failures caused by disasters such as drought, flooding or pest attacks, according to Reuters.
The program is part of the larger Indonesian crop insurance scheme launched in 2012-13 with
financial support from the Japan International Cooperation Agency (JICA). It promises to pay
farmers up to six million rupiah (around $480) for a crop failure. Under the program, the
government will pay 80% of the premium of 180,000 rupiah (around $13) per hectare.

Daily Exclusive ORYZA Rice E-Newsletter

The Indonesian crop insurance scheme already covers 470 hectares of rice fields in East Java
and Sumatra. This year, it has included Bali and few other provinces. The Head of the Bali
Provincial Agriculture and Foodstuffs Affairs Office noted that the program aims to cover 4,000
hectares this year.
Though the scheme currently targets only small-scale farmers, it aims to bring in all 27 million
farmers in Indonesia's 33 provinces by 2019.
Around 1,000 hectares of farm land in Bali is suffering severe drought conditions induced by the
El Nino weather phenomenon, which threaten the upcoming harvest. However, farmers are
sceptical about the claims settlement under the scheme.

Vietnam Prime Minister Seeks Neighboring

Nations' Help to Combat Drought
The Vietnam Prime Minister is seeking help from the neighboring nations, especially those
which are part of the Mekong River Commission, to help Vietnam in combating water shortfalls
due to the on-going drought conditions, according to Vietnam Net.
He reportedly asked the Ministry of Natural Resources & the Environment, the Ministry of
Foreign Affairs and Vietnam Mekong River Commission to send diplomatic notes to the
countries in Mekong upriver asking them to share information about water resources and the
operation of their hydropower reservoirs on Mekong River. He reportedly plans to ask them to
provide water to the lower course of Mekong, so that Vietnam's provinces in the Mekong Delta
can benefit.
The Prime Ministers instruction shows the states strong concern about water resources and the
difficulties Mekong Deltas people are facing," said the former Deputy Secretary of the Vietnam
Mekong River Commission.
He also noted that the International Mekong River Commission, which comprises the members
from four countries in Mekongs lower course, has so fat not taken any action amid the on-going
drought conditions. In principle, the commissions member countries have to have meetings and
discuss existing problems to come to consensus on the solutions to the problems. If so, countries
can voice their protests against the actions which affect the water sources, he added.
Other leading rice experts also praised the Prime Minister's action. China has reportedly agreed
to release water from its Jinghong Hydropower Station reservoir into the lower Mekong River to
help Vietnam deal with drought and salinity in a number of provinces in Mekong Delta.
About Nearly 140,000 hectares of rice area in Mekong Delta has been reportedly damaged by
drought and salt water intrusion as of March 7, 2016.

Daily Exclusive ORYZA Rice E-Newsletter

Oryza U.S. Rough Rice Recap Prices Firm

Amid Limited Trade Activity
Mar 17, 2016

The U.S. cash market was slightly firmer today although trading was limited as most buyers and
sellers remain at odd on prices.Some market participants are hopeful that more demand from Iraq
and Colombia will show up and shore up U.S. prices however the U.S. still remains
uncompetitive compared to some South American countries.

National Agencies Show Interest to Invest in

Thai Rice Research
Mar 16, 2016

A number of research institutes in Thailand are keen on investing the country's rice research
activities to help the government increase the competitiveness of Thai rice and rice products in
the global market, according to ThaiVisa.com.The Director-General of the Thai Rice
Department, which takes care of rice research in the country, told reporters that the investments
by the agencies will be used to develop premium rice species, improve nutritional value, and
help farmers raise productivity while lowering costs. He also noted that the Department's current
rice research activities are primarily focussed on the development of a new strain that thrives in
dry weather conditions. He added that the Department is working on the development of a
variety called 'Kor Khor 61.'
"Researchers are trying to introduce rice as ingredients in dietary supplements and cosmetics.
Fifteen studies have so far yielded promising results. They will soon be introduced to the rice
industry," he said.In a latest development, the Agricultural Research Development Agency
(ARDA) has shown interest to invest in the country's rice research. "ARDA would recommend
technologies to the farming sector to help increase the quality of grains," said the Deputy
Director of the ARDA.

Thailand Plans to Sell 641,000 Tons of

Stockpiled Rice in March 2016
Mar 16, 2016

The government of Thailand is planning to sell about 641,000 tons of stockpiled rice on March
30 and 31, 2016, Reuters quoted the Thai Commerce Ministry.This will be the second auction of
this year. The Chief of the Foreign Trade Department told reporters that bidding for 418,000 tons
8

Daily Exclusive ORYZA Rice E-Newsletter

of rice fit for human consumption will take place on March 30 and bidding for 223,000 tons unfit
for human consumption will take place on March 31, 2016."The government will open bidding
for rice in government stocks as it sees that the market needs rice including rice for industrial
use. This is a good time to offload rice from government stockpiles," she said.The government
reportedly sold 152,377 tons of rice worth 1.78 billion baht (around $50 million) in the first
auction on February 16 for human consumption, lower than the targeted 204,000 tons. It sold
around 245,262 tons of stockpiled rice worth 1.53 billion baht (around $43 million) for industrial
use on February 17, as part of the first auction.The government still holds about 12 million tons
of rice in its stockpiles and is keen on selling about 5 million tons this year.

Oryza CBOT Rough Rice Futures Recap Chicago Rough Rice Futures Capture Late
Session Rally as U.S. Dollar Tumbles and Oil
Surges in Wake of FOMC Announcement
Mar 17, 2016

Chicago rough rice futures for May delivery settled 11.5 cents were cwt (about $3 per ton)
higher at $10.485 per cwt (about $231 per ton). The other grains finished the day mostly lower;
Soybeans closed about 0.3% higher at $8.9450 per bushel; wheat finished about 1.4% lower at
$4.7075 per bushel, and corn finished the day about 0.1% lower at $3.6825 per bushel.U.S.
stocks struggled to hold gains Wednesday ahead of the scheduled afternoon conclusion of the
Fed meeting. The Federal Open Market Committee is due to conclude its two-day meeting on
Wednesday with the 2 p.m. ET release of its statement and economic projections. Those include
the highly scrutinized "dot plot," which shows the targets for appropriate federal funds rates by
FOMC participants. Fed Chair Janet Yellen is also scheduled to give a news conference at 2:30
p.m. U.S. crude oil futures traded near $37.84 a barrel in midday trade, a touch off session highs.
Earlier, WTI briefly traded more than 4% higher after weekly crude oil inventories showed a
smaller-than-expected build of 1.3 million barrels and following news producers will meet next
month in Qatar to discuss a proposal to freeze output. In other economic news, housing starts
rose 5.2% in February.
Industrial production declined 0.5% in February, with capacity utilization at 76.7%.In afternoon
trade, the Dow Jones industrial average traded down 29 points, or 0.17%, at 17,237. The S&P
500 traded down 3 points, or 0.17%, at 2,012, with health care leading five sectors lower and
energy the greatest advancer. The Nasdaq composite dipped 1 point, or 0.03%, to 4,727. Gold is
seen trading about 0.1% lower, crude oil is seen trading about 4% higher, and the U.S. dollar is
seen trading about 0.2% higher at about 1:00pm Chicago time.Tuesday, there were 288
contracts traded, down from 352 contracts traded on Monday. Open interest the number of
contracts outstanding on Tuesday increased by 38 contracts to 12,495.
Exclusive News have been shared with written permission of ORYZA.com with thanks
9