March 30, 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

India 2014-15 Rabi Rice Planting Reaches

3.943 Million Hectares as of March 27, 2015;
Down 9.5% from Last Year
Mar 27, 2015

Planting for India 2014-15 rabi (secondary) rice crop (November - May) has reached around
3.943 million hectares as of March 27, 2015; down about 9.5% from around 4.355 million
hectares planted during the same period last year, according to preliminary data released by the
Indian Agriculture Ministry.
The decline is reportedly due to untimely rains in some part of the rabi rice growing areas.
The government of India, in its second advance estimates for major crops, has estimated India's
rice production for 2014-15 marketing year (October 2014 - September 2015) at around 103.04
million tons, down about 3% from an estimated 106.65 million tons in 2013-14, according to a

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
statement from the Agriculture Ministry. It estimates around 88.02 million tons from kharif rice
crop and around 15.02 million tons from rabi rice crop.

Oryza U.S. Rough Rice Recap - Offers Soften

Yet Trade Continues to Stall
Mar 27, 2015

The U.S. cash market was slightly weaker today giving up the gains made yesterday; however,
the price variance is negligible as there is very little trading occurring at the current price level.
Analysts note that plantings are running behind in the U.S. Mid-South as wet weather continues
to be an issue. However, they contend that things are coming along well in Louisiana although
there is talk of a smaller second crop this year.

IGC Estimates 2015 World Rice Trade at 42

Million Tons; Down 3% from Last year
Mar 27, 2015

The International Grains Council

(IGC) has estimated 2015 world
rice trade at around 42 million
tons, down about 3% from a record
43 million tons in 2014 due to a
contraction in shipments to South
Asian markets. On the exports side,
the IGC expects Thailand to ship
about 11 million tons of rice in
2015 with shipments to African
destinations increasing. On the
imports side, it expects China to
import about 3.9 million tons of rice
in 2015 due to attractiveness of
competitively priced imports.
3

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com

The IGC estimates 2014-15 world rice production at around 475 million tons, slightly down
from around 476 million tons in 2013-14. It expects Indias rice production to decline about 3
million tons y/y to around 103 million tons. It expects production in Thailand and Pakistan to
decline, while it expects production in the U.S. to increase. It expects marginal increase in South
American production.
It expects world rice consumption in 2014-15 to increase to around 483 million tons, up about
1% from around 479 million tons in 2013-14 and also expects total use to exceed world
production. It expects consumption ton sub-Saharan African countries of Nigeria, Cte dIvoire
and Madagascar to increase 2% y/y to around 26.6 million tons. Demand for high-quality
imported white and parboiled rice is expected to increase.
Therefore, the Council expects world rice ending stocks in 2014-15 to decline to around 101
million tons from around 110 million tons in the previous year. Major declines are expected in
Thailand and India. The IGC expects Thailands stocks to contract by almost a quarter to 9.1
million tons in 2014-15 from an estimated 11.8 million tons in 2013-14 due to excessive sale of
stockpiled rice by the government. Indias stocks are also expected to decline about 23% y/y to
around 16.8 million tons in 2014-15 due to a lower kharif output.

China Signs 1,500 Ton Rice Import Deal with

Pakistan
Mar 27, 2015

China's Guangdong Grain Association has signed an agreement with the Rice Exporters
Association of Pakistan (REAP) for the import of around 1,500 tons of rice this year, according
to local sources.
A 10-member delegation from China, which is on a visit to Pakistan met with the members of
REAP at the Head Office of the Trade Development Authority of Pakistan (TDAP) on March 25,
2015. The TDAP reportedly arranged for a business-to-business meeting of the two associations.

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
Prior to the meeting, the Chinese delegation visited a rice processing factory in Karachi on
March 23, 2015 and reportedly expressed satisfaction over the quality of rice and standard of the
processing factory. They are also likely to visit some more factories in Lahore and Islamabad.

The REAP has been urging the government to support them in increasing rice exports to China
and tap a significant share in the Chinese market. China imports a huge quantity of rice every
year from Thailand and Vietnam. But exporters say Pakistan rice is also favoured by the Chinese
for its taste. Last year, they TDAP and the Pakistan embassy in Beijing to take up the issue of
increase China's annual rice import limit from Pakistan to around 750,000 tons from around
500,000 tons during the their Prime Minister's visit to China. They noted that the low import
quota is deterring them to increase rice exports to China.
Pakistan exported around 158,351 tons of non-basmati rice to China in the first six months of FY
2014-15 (July - June), according to data from the Rice Exporters Association of Pakistan
(REAP). The South Asian nation exported around 353,242 tons of rice to China in FY 2013-14.

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com

India May Export Basmati Rice to China

After June 2015, Say Exporters
Mar 27, 2015

Indian basmati rice could not find its way into the world's largest consumer of rice due to
concerns of it being infested with 'khapra beetle' and lack of proper phyto-sanitary regulations
between the two countries. Now, the government of India is preparing ground to begin exporting
basmati rice to China.
India's National Plant Protection Organization (NPPO) is likely to declare some of the country's
rice-shelling and exporting units registered with it as free from 'khapra beetle' infestation,
according to local sources. The government of India is expected to send a list of credited Indian
rice mills with the infestation-free certification from the NPPO to the Chinese authorities by the
end of June this year, according to the President of Punjab Rice Exporters' Association.

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
He told local sources that they are expecting India to begin basmati rice shipments to China after
the government send the list of accredited millers.
Trade sources added that trade enquiries have already started coming in and the Chinese
government has reportedly invited Indian rice exporters to visit their country, analyze the market
and make presentations, according to the President of the All India Rice Exporters Association
(AIREA). "It might take us a few years to penetrate China, but the country has potential to
become a big market for Indian basmati rice due to its huge population, increasing income levels
and openness to try new cuisines," one of the leading rice exporter in India was quoted as saying.
Increasing rice exports to China has been on the agenda of the government as part of efforts to
contain increasing trade deficit with the neighboring country. In January this year, an official
from the Commerce Ministry noted that India's trade deficit with China currently stands at
around $32 billion and is expected to cross $40 billion by the end of this fiscal year. Currently,
Vietnam and Thailand are major rice suppliers to China, followed by Australia and Pakistan.
Indian basmati exporters are also planning to diversify into newer markets such as South Africa
and Mexico apart from maintaining their share in the traditional markets of Iran, Saudi Arabia,
Iraq, Kuwait and United Arab Emirates.
India's basmati rice exports have declined about 6% to around 2.92 million tons in April 2014 January 2015 from around 3.09 million tons exported in the same period in FY 2013-14,
according to the Agricultural and Processed Food Products Export Development Authority
(APEDA). India's total rice exports including basmati and non-basmati) increased about 7% to
around 9.57 million tons during the ten-month period from around 8.96 million tons exported
during the same period in FY 2013-14.

India Rice Sellers Lower Some of Their

Quotes Today; Other Asia Rice Quotes
Unchanged
Mar 27, 2015

India rice sellers lowered their quotes for 5% broken rice by about $10 per ton to around $375 $385 per ton today. Other Asia rice sellers kept their quotes mostly unchanged today.

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
5% Broken Rice
Thailand 5% rice is indicated at around $385 - $395 per ton, about a $25 per ton premium on
Vietnam 5% rice shown at around $360 - $370 per ton. India 5% rice is indicated at around $375
- $385 per ton, down about $10 per ton from yesterday and about $10 per ton premium on
Pakistan 5% rice shown at around $365 - $375 per ton.
25% Broken Rice
Thailand 25% rice is shown at around $370 - $380 per ton, about $30 per ton premium on
Vietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around
$340 - $350, about a $10 per ton premium on Pakistan 25% rice shown at around $330 - $340
per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $385 - $395 per ton. India parboiled rice is
indicated at around $370 - $380 per ton, about a $15 per ton discount to Pakistan parboiled rice
shown at around $385 - $395 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is indicated at around $320 - $330per ton, about a $15 per ton
premium on Vietnam 100% broken rice shown at around $305 - $315per ton. India's 100%
broken rice is shown at around $275 - $285 per ton, about a $10 per ton discount to Pakistan
broken sortexed rice shown at around $285 - $295 per ton.

Italian Japonica and Indica Paddy Quotes

Converge
Mar 27, 2015

Italian paddy quotes are stable. Long B prices remain firm, while Long A and round prices are
slightly lower; the result is a slight reduction in the gap between Indica and Japonica quotations.
Below are farm gate paddy rice quotations supplied by Milan Grain Exchange, as of March 24:

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
Arborio-Volano was shown at 695-725 euros (about $755-788) per ton, down from 705-735
euros (about $766-799) per ton of March 17; Balilla, Centauro and similar varieties were priced
370-385 euros (about $402-418) per ton on March 24, unchanged from a week prior.
Lido, Crono, Flippe and similar varieties were priced 360-375 euros (about $391-407) per ton on
March 24, unchanged from a week prior.
Padano-Argo is shown at 555-655 euros (about $603-712) per ton, down from 565-665 euros
(about $614-723) per ton of March 17; Vialone Nano is shown at 750-800 euros (about $815870) per ton, down from 770-820 euros (about $837-891) per ton of March 17.
Thaibonnet and similar Indica varieties remain firm at 328-338 euros (about $356-367) per ton,
unchanged from a week prior; Sant'Andrea was shown at 565-615 euros (about $614-668) per
ton, down from 570-620 euros (about $619-674) per ton of March 17; Carnaroli was fixed at
695-725 euros (about $755-788) per ton, down from 725-755 euros (about $788-821) per ton of
March 17; Baldo paddy prices were slightly down at 570-620 euros (about $619-674) per ton,
from 575-625 euros (about $625-679) per ton of a week prior.
Roma is firm at 585-615 euros (about $636-668) per ton, down from 590-620 euros (about $
641-674) a week prior.
Selenio was shown at 345-370 euros (about $375-402) per ton on March 24, unchanged from a
week prior.
Augusto was quoted 405-420 euros (about $440-456) per ton on March 24, unchanged from a
week prior.
Loto and Nembo were priced 405-420 euros (about $440-456) per ton on March 24, unchanged
from a week prior.
Luna CL, Dardo and similar were indicated at 360-380 euros (about $391-413) per ton on March
24, also unchanged.

Italy Refutes Cambodias Claim Over

Reduction in Rice Exports to EU in 2014
Mar 27, 2015

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com

The Cambodian Rice Federation (CRF) has discussed with the EU delegation, which visited
Cambodia to discuss over rice exports under the Everything But Arms (EBA) agreement, over
Italy's concerns on increasing EU rice imports from Cambodia and affecting the competitiveness
of locally produced rice.The CRF told the EU delegation that Cambodia has been focusing on
exporting more of fragrant and jasmine rice to the EU and does not compete with the locally
produced white rice. It also noted that Cambodia will lessen its dependence on EU market and
focus on improving the quality of their rice. It further added that Cambodia's rice exports to EU
so far in 2015 have declined by about 30% compared to same period last year.
The CRF President noted that they do not intend to increase EU share and are stepping up their
efforts to diversify their export market for fragrant rice.
It also noted that the Cambodian rice industry is shifting its focus to high end quality of fragrant
rice than the large quantity low-end long grain white (LGWR). They are also aiming to apply for
a Geographical Indication (GI) tag for Cambodian Jasmine rice.

10

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
However, Italy's Ente Nazionale Risi, the National Agency for rice noted that the figures
provided by Cambodia on 2015 rice exports are wrong as the EU data shows that the decline
during the stated period has been only 10%. They noted that despite a decline in imports from
Cambodia, Italy is not able to recapture its lost share in the local market.

Oryza Overnight Recap Chicago Rough

Rice Futures Lower Overnight as Market
Appears Unable to Maintain Gains
Mar 27, 2015

Chicago rough rice futures for May delivery are currently seen 14 cents per cwt (about $3 per
ton) lower at $10.970 per cwt (about $242 per ton) during early floor trading in Chicago. The
other grains are seen trading mostly lower: soybeans are currently seen about 0.5% lower, wheat
is listed about 0.2% higher and corn is currently noted about 0.4% lower.
U.S. stocks traded in a narrow range on Friday as equities attempted to break the week's decline
and investors remained cautious ahead of first quarter earnings in April. The Nasdaq held gains
while the Dow and S&P 500 struggled to stay in positive territory. Stocks have not posted gains
for a single day so far this week. Federal Reserve Chair Janet Yellen will speak shortly before
closing bell on Friday. The third estimate for fourth-quarter U.S. gross domestic product (GDP)
came in unchanged at 2.2%. While corporate profits fell, consumer spending was revised higher
to 4.4% from 4.2%, the fastest rate since the first quarter of 2006. Most analysts expected a rise
to 2.4% from 2.2%. However, a few estimates say weak U.S. economic data could result in a
negative revision. The Dow Jones industrial average traded up 15 points, or 0.08%, at 17,960.
The S&P 500 traded up 1.60 points, or 0.08%, at 2,057, with health care leading nine sectors
higher and energy the only laggard. The Nasdaq traded up 8.29 points, or 0.17%, at 4,872. Gold
is currently trading about 0.8% lower, crude oil is seen trading about 3.1% lower, and the U.S.
dollar is currently trading about 0.1% lower at 9:00am Chicago time.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Fall Back Below $11.000 per
cwt but Manage Third Consecutive Weekly
Gain
11

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
Mar 27, 2015

Chicago rough rice futures for May delivery settled 12 cents per cwt (about $3 per ton) lower at
$10.990 per cwt (about $242 per ton). The other grains closed mostly lower, although wheat did
manage to recover a portion of losses sustained yesterday; Soybeans closed about 0.7% lower at
$9.6725 per bushel; wheat finished about 1.7% higher at $5.0775 per bushel, and corn finished
the day about 0.1% lower at $3.9100 per bushel.
U.S. stocks traded mostly higher on Friday as equities attempted to break the last four days of
decline and investors remained cautious ahead of first quarter earnings in April. The U.S. dollar
is up more than 13% in the last six months and has weighed on corporate earnings. The Nasdaq
held gains while the Dow and S&P 500 struggled to stay in positive territory on Friday. Stocks
have not posted gains for a single day so far this week. The last time the S&P posted losses for
every consecutive day from Monday to Friday was in May 2012. The third estimate for fourthquarter U.S. gross domestic product (GDP) came in unchanged at 2.2%. While corporate profits
fell, consumer spending was revised higher to 4.4% from 4.2%, the fastest rate since the first
quarter of 2006. Most analysts expected a rise to 2.4% from 2.2%. However, a few estimates
held that weak U.S. economic data could result in a negative revision. The Dow Jones industrial
average traded up 12 points, or 0.06%, at 17,689. The S&P 500 traded up 3 points, or 0.12%, at
2,058, with health care leading seven sectors higher and energy the greatest laggard. The Nasdaq
traded up 17 points, or 0.35%, at 4,880. Gold is trading about 0.4% lower, crude oil is seen
trading about 5% lower, and the U.S. dollar is seen trading about 0.1% lower at about 2:00pm
Chicago time.
Thursday, there were 343 contracts traded, down from 724 contracts traded on Wednesday. Open
interest the number of contracts outstanding on Thursday decreased by 32 contracts to 8,944.

Vietnam Enterprises Buy 70% of

Targeted Rice Under 2015 Stockpiling Plan;
Prices Remain Steady
Mar 27, 2015

12

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
Vietnam enterprises have bought about 71% or
around 700,000 tons of targeted one-million tons
of winter-spring rice under the governmentapproved stock piling plan so far from March 1,
2015 when the scheme began, Bloomberg quoted
local sources as saying. The VFA Deputy
Chairman told local sources that the program is
being conducted more effectively this year due
to improved connections among Mekong Delta
provinces and cities. He however noted that
about ten businesses had failed to meet their
purchase quota of around 60,000 tons due to
difficulties in accessing bank loans.The scheme
will continue till April 15, 2015, according to
local sources. The government approved the
stockpiling plan to prevent prices from falling during the harvest of the winter-spring crop. The
government has been assisting businesses with 100% soft loans for four months to buy rice under
the program. This is the sixth consecutive year that the government of Vietnam has approved the
rice stockpiling program during the harvest time of the country's largest winter-spring crop. The
Mekong Delta region is expected to harvest about 6.34 million tons of winter-spring crop.
The stockpiling program coupled with the Philippines contract to supply 300,000 tons of rice are
expected to push up prices considerably.
According to data from UN's Food and Agriculture Organization (FAO), wholesale prices of
25% broken rice in the Dong Thap province of the Mekong Delta region increased to around 7
million Dong (around $330) per ton in March 2015 from around 6.7 million Dong (around $310)
per ton in February 2015. Similarly, wholesale prices of 20% broken rice increased to around 6.9
million Dong (around $320) per ton in March 2015 from around 6.65 million Dong (around
$310) per ton last month.
Generally, the past experience shows that the government approved stockpiling plans were not
that effective in controlling price falls. Lack of proper storage facilities is cited as the main
reason for enterprises not showing interest in buying rice under the program.

Philippines Sees Record Rice Yield in FY

2014 Despite Decline in Acreage; DA
Inaugurates New Rice Processing Project
Mar 27, 2015

13

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
The Bureau of Agricultural Statistics (BAS) has estimated the Philippines paddy production in
FY 2014 at around 18.97 million tons, up about 2.87% from around 18.44 million tons in FY
2013 despite a decline in the paddy rice acreage by around 6,419 hectares y/y, according to local
sources.
The increase in production is attributed to an increase in yield to around 4 tons per hectare
compared to last years yield of 3.87 tons per hectare. Most of the increase has come from the
Mindanao region due to better irrigation and water management as well as use of high-yielding
varieties. Paddy rice production in the region increased by about 6.039% y/y, according to the
Department of Agriculture (DA).
The government aims to produce around 20 million tons of rice each year from 2014 until 2016
through expanding the cultivation areas and the yield per hectare.
Recently at Barangay Ab-abut, the DA inaugurated a large rice processing project to increase the
quantity of processed rice as well as local farmers income. The project consists of a complex
worth P14-million (around $312,463) is that can process 1200 kilograms of rice per hour. The
plant is expected to provide employment opportunities for farmers. The government allocated
another P2 million (around $44,637) for capital assistance as part of the farmers' cooperative for
plant management.

TREA Forecasts Thailand to Export 800,000

Tons of Rice in March 2015
Mar 27, 2015

The Thai Rice Exporters Association (TREA)

forecasts Thailand to export around 800,000
tons in March 2015, Bloomberg quoted a
statement from the association.The TREA
noted that while buyers in Africa are buying
white and glutinous rice from Thailand, other
buyers have been shifting to cheaper sources.
Vietnam rice prices are expected to decline
further due to increasing supplies from the
ongoing harvest.Thailand exported around
732,151 tons in February 2015, up about 3.1% from last year.

14

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com

Vietnam Revisits Benefits of Floating Rice

Cultivation
Mar 27, 2015

Vietnam, world's third largest rice exporter and fifth largest rice producer, is embracing older
rice farming techniques such as floating rice or deep water rice. The concept, which was given
up gradually over the last five decades is again gaining popularity due to the ecological, social
and economic benefits associated with it.Before 1975, floating rice cultivation was very
prevalent in Vietnam's Mekong Delta. It accounted for nearly 500,000 hectares of Vietnam's rice
area. However, it's proportion gradually declined reaching some tens of hectares by 2012.

15

Daily Exclusive ORYZA Rice E-Newsletter

www.ricepluss.com
Introduction of high-yielding varieties and agricultural intensification are said to be main reasons
for a decline in floating rice cultivation area.
However, the government as well as the environmentalists have recognized that the novel
methods of rice farming have led to water scarcity, agro-chemical pollution and soil infertility in
the Mekong Delta. So, they have decided to re-expand the area under floating rice cultivation.
Under this type of cultivation, rice is first grown on rainwater until flooding occurs in midAugust. The stalks of the rice plants grow along with the level of flood water. When the water
level begin to recede in November, the rice plants lie flat on the ground, flower and produce
grain and be ready for harvest by December. The average yield from this type of cultivation was
about 2.5 tons per hectare. During flooding season, farmers also harvest wild fish inside the
flooded fields gaining double income. The floating rice area also provides an important habitat
for birds also.
This type of rice cultivation requires no pesticides and a very small amount of chemical fertilizer
would suffice, and soil fertility is naturally maintained through the deposition of rice stalks as
floods recede. It is also known to reduce greenhouse gas emissions and sequester carbon as
farmers do not burn the straw.
In the dry season, farmers grow several upland crops cassava, Chinese onion, egg plants,
pumpkin and chillies. Income from floating rice system is much higher, say farmers.With the
disappearance of floating rice system, wild fish also disappeared thereby reducing an income
source for farmers. They say though the modern systems of rice farming have increased yields, a
lot of health concerns due fertilizer and pesticide residues have also increased. Therefore
authorities are again planning to increase acreage under this system.

16