23rd june 2015 daily exclusive oryza e rice newsletter by riceplus magazine

1 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine |

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June 23 ,2015




Oryza U.S. Rough Rice Recap - Prices Hold

Steady as Focus Shifts to Next Week's

Acreage Report

Jun 22, 2015

The U.S. cash market was seen steady again today as buyers and sellers continue to stand off on

prices. Analysts note that sellers are holding out hoping for a bullish acreage report next week

while buyers insist that any reduction to the production figures will still not likely be enough to

significantly reduce next years ending stocks unless export demand picks up considerably.

In the meantime, the USDA estimates that as of June 21st, that 6% of the crop has headed which

was 3% ahead of this time last year and 1% ahead of the previous 5-year average. As of now, the

USDA estimates that 0% of the rice crop in Arkansas has headed compared to , 10% in

California, 22% in Louisiana, 11% in Mississippi, 0% in Missouri, and 2% in Texas.

The USDA estimates that 68% percent of the crop in good to excellent condition, which was

down 1% from last week and on par with this time last year. As of now, the USDA estimates that

67% of the crop in Arkansas is in good to excellent condition compared to, 85% in California,

67% in Louisiana, 73% in Mississippi, 54% in Missouri, and 49% in Texas.

Government of Thailand Will Release Only

Good Quality Rice for Human, Animal

Consumption, Says Commerce Ministry

Jun 22, 2015




Responding to reports of the Thai government's plans to sell poor quality rice from the

government stocks to animal feed industry and ethanol manufacturers, the Ministry of

Commerce has clarified that it will not sell low quality rice for domestic consumption, according

to local sources.The Director General (DG) of the Department of International trade Promotion

(DITP) told local sources that Ministry will sell low quality rice to industries that do not produce

human or animal food. It noted that the amount of rice released would be decided depending on

the supplies of rice received from the main crop harvest. It also assured the market that the

release of rice stocks would not impact the market price.

Earlier this month, the DG-Department of Foreign Trade confirmed that only 2.6 million tons are

fit for human consumption.The Thai military government currently holds over 16 million tons of

rice in its warehouses. The Commerce Ministry, which sold about 1.96 million tons of rice in

seven auctions since it took over in May 2014, plans to sell around 10 million tons this year and

about six million tons next year.




Government of Indonesia Seeks to Redesign

"Rice-for-the-poor" Program

Jun 22, 2015

Indonesia's Corruption Eradication Commission (KPK) has recommended the government to

redesign its rice-for-the-poor (Raskin) program after finding irregularities in the implementation

of the program, according to local sources.The President today discussed about the

reorganization of the Raskin program for 2016 with a team of Cabinet members today. He

instructed relevant authorities to take necessary steps to improve and rectify the list of receipients

under the Raskin program to ensure the real needy people take advantage of the scheme. He

noted that irregularities have arisen due to geographical conditions. The problem should be

addressed, he said.




Yesterday, the Social Affairs Minister told local sources that based on the KPK

recommendations, the government would redesign its Raskin program and confirmed and ruled

out the possibility of discontinuing the program. She ruled out reports that the KPK's

recommendations followed indications of corruption in the Raskin program and noted that the

irregularities were mostly related to the amount and quality of rice distribution.According to the

Minister, the government allocated about Rp 18.9 trillion (around $1.4 billion) for the 2015

Raskin program. Currently, the Social Affairs Ministry looks after the budgetary allocations for

the program and the state logistics agency Bulog takes care of the distribution through local

administrators.For 2016 Raskin program the government is planning to spread the budgeted

allocations more evenly among all the local administrators and ensure the rice is distributed to

targeted beneficiaries in adequate amounts and in timely manner.

Nigerian Rice Farmers Seek Liberal Credit

Facilities to Boost Production

Jun 22, 2015




Rice farmers associations in Nigeria have requested the Federal government to relax the rules

related to accessing credit in order to boost rice production and ensure food security in the

country, according to local sources.A former official from the All Farmers Association of

Nigeria (AFAN) told local sources that though funds are available to provide lending facilities to

farmers, stringent rules have not been allowing farmers to benefit out of them. He noted that

access to agricultural inputs such as high-yielding and quality rice seeds, fertilizers and

herbicides have become too expensive in Nigeria and therefore high investment is needed to

carry out rice farming in the country.

He noted that lack of easy access to credit facilities, especially rural farmers, is forbidding

agricultural development in the country. Suggesting some means to address the issue, he said:

“liberal terms to cooperative groups may help to address the challenge of funds and access to

input may be tied to repayment with harvest.”The Director of the Federal Ministry of Agriculture

in the Bayelsa state noted that the commercial banks need to take an initiative and promote easy

financing schemes to support farmers. They need to be particularly considerate in setting simpler

collateral requirements, he said.“Credible platform should be created for easy access to credit

facilities to encourage farmers because collateral is not helping matters," added the Chairman of

the Rice Farmers Association of Nigeria (RIFAN) in the state.Nigeria produced around 2.9

million tons in 2014, about 52% higher than around 1.9 million tons produced in 2013, according

to the Agriculture Ministry. USDA estimates Nigeria to produce around 2.835 million tons of

rice and import around 4 million tons of rice in MY 2014-15 (October – September) to meet a

consumption demand of around 6.4 million tons.

Asia Rice Quotes Mixed Today

Jun 22, 2015

Thailand rice sellers increased their quotes for 5% broken rice, 25% broken rice and Parboiled

rice by about $5 per ton each and lowered their quotes for Hommali rice by about $25 per ton

today. Vietnam rice sellers increased most their quotes by about $5-10 per ton today. India rice

sellers increased their quotes for 5% broken rice and parboiled rice by about $20 per ton and $5

per ton respectively. Pakistan rice sellers increased their quotes for 5% broken rice by about $10

per ton and lowered their quotes for 25% broken rice, 100% broken rice and parboiled rice by

about $5 per ton each.

5% Broken Rice




Thailand 5% rice is indicated at around $365 - $375 per ton, up about $5 per ton from Friday and

about a $15 per ton premium on Vietnam 5% rice shown at around $350 - $360 per ton, up

about $5 per ton from Friday. India 5% rice is indicated at around $385 - $395 per ton, up about

$10 per ton from Friday and on par with Pakistan 5% rice shown at around $385 - $395 per ton,

up about $10 per ton from Friday.

25% Broken Rice

Thailand 25% rice is shown at around $345 - $3505 per ton, up about $5 per ton from

Friday and about $15 per ton premium on Vietnam 25% rice shown at around $330- $340 per

ton, up about $5 per ton from Friday. India 25% rice is indicated at around $350 - $360, about

$10 per ton premium on Pakistan 25% rice shown at around $340 - $350per ton, down about $5

per ton from Friday.

Parboiled Rice

Thailand parboiled rice is indicated at around $365 - $375 per ton, up about $5 per ton from

Friday. India parboiled rice is indicated at around $365 - $375 per ton, up about $5 per ton from

Friday and about $30 per ton discount to Pakistan parboiled rice shown at around $395 - $405

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

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 $15 per ton discount to Pakistan

broken sortexed rice shown at around $295 - $305 per ton, down about $5 per ton from Friday.

Philippines to Decide Over Additional

250,000 Tons of Rice Imports in First Week

of July

Jun 22, 2015




The National Food Authority (NFA) Council of the Philippines will meet in the first week of

July to discuss supply and import of additional 250,000 tons, it is already authorized to import,

Bloomberg quoted the NFA Administrator.The Administrator told reporters that the imports of

additional volume would depend on the perceived impact of dry spell in the light of a conflicting

outlook for a mild and prolonged El Nino.

The Philippines imported 750,000 tons of rice (550,000 tons from Vietnam and 200,000 tons

from Thailand) so far this year. Earlier this week, the NFA invited private traders to import up to

805,200 tons of rice under the WTO's minimum access volume (MAV) quota at 35% tariff.

In the second week of June, the Philippines Statistics Authority (PSA) estimated Philippines's

2015 second quarter (April - June) production to decline by about 4.3% to around 3.898 million

tons from last year's 4.073 million tons due to a decline in harvest area prompted by dry spell and

insufficient water supply as well as incidence of pests and diseases in some rice growing areas.




Italian Paddy Rice Prices Remain Relatively

Stable in Second Week of June

Jun 22, 2015

Prices of most of the Italian rice varieties recorded minimal changes during the weekended June

16, 2015 from the previous week though prices of some Japonica varieties such as Vialone Nano

adn Carnaroli increased significantly. More than 90% of the 2014 crop has been sold out and

since only about 7-8% of the total last year's crop are still available, quotations for most of the

varieties were unavailable on June 16.Below are the paddy quotations supplied by Milan Grain

Exchange, farm gate quotes, as of June 16:




Arborio-Volano rice on June 9 was shown at 870-900 euros (about $ 987-1,022) per ton, but on

June 16 was not quoted.Balilla, Centauro and similar varieties paddy prices were firm at 415-430

euros (about $ 471-488) per ton on June 9, but was not quoted on June 16.Lido, Crono, Flipper

and similar paddy varieties are unchanged at 325-340 euros (about $ 369-386) per ton, on both

weeks.Padano-Argo was not quoted on both weeks.Vialone Nano decidedly increased from 810-

860 euros (about $ 919-976) per ton on June 9 at 850-900 euros (about $ 965-1,022) on June

16.Thaibonnet and similar Indica varieties slightly decreased at 320-330 euros (about $ 363-374)

per ton on June 16 starting from 330-340 euros (about $ 374-386) per ton on June 9;

Sant'Andrea increased to 565-615 euros (about $ 641-698) per ton on June 16, from 525-575

euros (about $ 596-652) per ton on June 9; Carnaroli was not quoted on June 16; on June 9 it was

quoted 870-900 euros (about $ 987-1,022) per ton; Baldo paddy prices were unchanged at 490-

540 euros (about $ 556-613) per ton on both weeks; Roma was not quoted on June 16, but was

out 625-655 euros (about $ 709-743) per ton on June 9.

Selenio was not quoted on June 16, starting from 405-430 euros (about $ 459-488) per ton on

June 9.

Augusto was out at 340-355 euros (about $ 386-403) per ton on June 16, from 345-360 euros

(about $ 391-408) per ton on June 9.

Loto and Nembo were quoted at 340-355 euros (about $ 386-403) per ton on June 16, from 345-

360 euros (about $ 391-408) per ton on June 9.

Luna Cl, Dardo and similars quoted 320-340 euros (about $ 363-386) per ton, unchanged from a

week prior.

Global Rice Quotes

June 23rd, 2015

Long grain white rice - high quality

Thailand 100% B grade 375-385 ↔

Vietnam 5% broken 345-355 ↓

India 5% broken 385-395 ↔




Pakistan 5% broken 385-395 ↔

Myanmar 5% broken 415-425 ↔

Cambodia 5% broken 430-440 ↔

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 325-335 ↓

Pakistan 25% broken 340-350 ↔

Cambodia 25% broken 410-420 ↔

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 365-375 ↔

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 480-490 ↑

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 820-830 ↔

Brokens

Thailand A1 Super 315-325 ↔

Vietnam 100% broken 310-320 ↔

Pakistan 100% broken stxd 285-305 ↔

Cambodia A1 Super 350-360 ↔

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




Cambodia Seeks to Offer More Competitive

Bid in Next Filipino Rice Tender

Jun 22, 2015

Cambodia, which offered a relatively higher bid in the recent Filipino tender for 100,000 tons of

rice, is working on ways to offer a more competitive bid in the next tender by the Philippines

government, according to local sources.When the National Food Authority (NFA) of the

Philippines re-invited bids from the three governments for the remaining 100,000 tons on June

16, all the three competitors, including Cambodia, Vietnam and Thailand offered bids at much

higher prices than the reference price of the NFA. All the three bidders were asked to revise their

bids.




While Thailand backed out, Vietnam's bid at $416 per ton and Cambodia's bid at $455 were

again higher than the reference price. Since Vietnam's bid was lower of the two, it was won the

Philippines contract.Now, Cambodia's bid was way above the competitors' as well as the NFA's

reference price. The President of the Cambodia Rice Federation (CRF) told local sources that

Cambodian exporters cannot afford to lower price beyond this due to higher production,

processing, milling, storage and transportation costs prevailing in the country.

He noted that they are working to bring down all the associated costs and offer a competitive bid

in the next tender. “We are looking at short-term solutions, like cutting down service costs in the

value chain, such as port fees, and in the long term to increase efficiency in rice processing

among the millers and rice productivity among the farmers,” he was quoted as saying.

Some analysts also noted that high costs of production inputs such as fertilizers and insecticides

as well as high energy costs and use of outdated technology in processing plants is impacting

Cambodia's competitiveness in the global market. They are suggesting a mechanism that

improves the entire value chain of Cambodia's rice sector.One of an independent economists

noted that Filipino deals offer very low margins. But Cambodia could make up for these low

margins with higher profits from high value export destinations.

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 1.2 million tons of rice

(including official and unofficial exports to Vietnam and Thailand through borders) in 2015, up

about 9% from an estimated 1.1 million tons in 2014.

Philippines Plans to Preserve and Promote

Historical Heirloom Rice Varieties

Jun 22, 2015




The Philippines Agriculture Department (DA), the Philippine Rice Research Institute (PhilRice),

International Rice Research Institute (IRRI), International Rice Genebank of IRRI and several

non-government organizations are jointly launching to project to preserve, nurture and market

the historical heirloom rice varieties that grow in the northern Cordillera region, Reuters quoted

local sources.The project is aimed at inculcating health consciousness among the Filipino rice

consumers as the heirloom rice varieties are grown organically. The project includes exploring

more of such highland rice varieties as well as reviving almost extinct ones.According to the

Research Assistant Director of the DA in the Cordillera region, nearly 300 rice varieties were

grown in the Cordillera mountains comprising of Abra, Kalinga, Apayao, and the Mountain

province using pre-hispanic tradition, but only 14 varieties found in Kalinga and Apayao, and 16

in the Mountain province (3 of which are known to be extinct) are said to be identified and

documented so far.According to a survey conducted in 2009, of late , rice farmers in the

Cordillera region are giving up planting of indigenous varieties for foreign varieties, which are

adaptable to highland and provide higher yield in short period. "There was a great fear this would

result in loss of bio-diversity that dictates the Cordillera mountain's agricultural cropping

patterns, loss of watershed, and deterioration of highland farming that has enhanced tourism

attraction in the north," said the Head of Heirloom at the IRRI.Her work on conserving and

marketing Heirloom rice varieties, which began in 2004, had attracted support from local and

national government agencies, including public and private institutions.Though consumers view

Heirloom rice varieties as a health management solution, they are pretty expensive and are not

affordable by all consumers, say retailers.

23rd june 2015 daily exclusive oryza e rice newsletter by riceplus magazine

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