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July 1 5, 2015
Vol 5 ,Issue VII

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Bangladesh Releases Five High-Yielding


Aman Rice Varieties
Jul 14, 2015

The government of Bangladesh has released five new Aman rice varieties that are high-yielding
and are capable of withstanding extreme climate conditions, according to local sources.While
four of the varieties, BRRI 70, 71, 72 and 73 are developed by the Bangladesh Rice Research
Institute (BRRI), the other one BINA Dhan 17 is developed by the Bangladesh Institute of
Nuclear Agriculture (BINA).
All the newly released paddy varieties reportedly bear different characteristics including stresstolerance, drought-tolerance, aromatic and zinc-enriched qualities. While the average Aman rice
yield in the country is at around 3.5 tons per hectare, the new varieties are capable of producing

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around 5 to 5.5 tons per hectare, according to local sources. The BINA Dhan 17 is said to yield
around 7 tons per hectare.
The new varieties would help the nation to increase rice production on the limited space of land,
said the Additional Secretary of the Agriculture Ministry.
Bangladesh had earlier developed seven saline-tolerant, three drought-tolerant and two
submergence-tolerant paddy varieties. So far, since the country's independence in 1971, the
government-owned research institutes have invented around 83 rice varieties. The BRRI has
introduced 66 rice varieties, including 33 Aman varieties, and BINA has introduced 17, of which
13 are Aman varieties.
In the fiscal year 2014-15 (July - June), production from the Aman (July-December), Aus
(February-August) and Boro (January-May) crops is estimated at around 14 million tons, 2.328
million tons and 19 million tons respectively, according to data from the Department of
Agricultural Extension (DAE).
USDA estimates Bangladeshs MY 2015-16 (July 2015 June 2016) milled rice production to
slightly increase to about 35 million tons from an estimated 34.5 million tons in MY 2014-15. It
estimates Bangladesh to import around 1.1 million tons of rice in 2015.

Oryza Afternoon Recap - Chicago Rough


Rice Futures Shoot Back above $11.000 per
cwt despite Softer U.S. Grain Prices Today
Jul 14, 2015

Chicago rough rice futures for Sep delivery settled 14.5 cents per cwt (about $3 per ton) higher at
$11.080 per cwt (about $244 per ton). The other grains finished the day lower; Soybeans closed
about 0.3% lower at $10.2500 per bushel; wheat finished about 0.8% lower at $5.7100 per
bushel, and corn finished the day about 2.8% lower at $4.2825 per bushel.
U.S. stocks traded higher on Tuesday as investors eyed economic reports and earnings that
continued to indicate less-than-robust growth, amid developments in Greece and Iran. European
stocks ended mildly higher on hopes that the Greek parliament will pass the legislation needed to
secure a third bailout. Asian shares were mixed with Chinese stocks ending a three-day winning
streak to close just over 1% lower. The Greek finance ministry submitted a reform bill Tuesday.
The nation's parliament has until Wednesday night to approve the legislation, paving the way for

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Athens to meet a Monday repayment deadline to the European Central Bank. U.S. equities rose
further in midday trade but gains remained muted. In other international news, Iran and six major
powers early on Tuesday clinched a historic nuclear deal that will see some sanctions against
Tehran eased in exchange for restrictions on its nuclear program. In other economic news, May
business inventories rose 0.3%, in-line with expectations. Business sales rose 0.4% after
increasing 0.5% in April. U.S. import prices unexpectedly fell in June as the lingering effects of
a strong dollar offset rising costs for petroleum products, keeping imported inflation pressure
under wraps. The Dow Jones Industrial Average traded up 66 points, or 0.37%, at 18,042. The
S&P 500 traded up 9 points, or 0.42%, at 2,108, with energy leading nine sectors higher and
utilities the only laggard. The Nasdaq traded up 36 points, or 0.71%, at 5,107. Gold is trading
about 0.2% lower, crude oil is seen trading about 1% higher, and the U.S. dollar is seen trading
at about 0.2% lower at about 1:00pm Chicago time.
Monday, there were 881 contracts traded, down from 1,154 contracts traded on Friday. Open
interest the number of contracts outstanding on Monday decreased by 200 contracts to 9,195.

China Rice Imports Decline Sharply in First


Four Months of 2015
Jul 14, 2015

China has imported around 628,000 tons of rice in the first four months of 2015 (January April), down about 23% from around 812,600 tons imported during the same period last year,
according to data from China Customs General Administration.
In April 2015, China imported around 330,000 tons of rice, over twice from around 140,000 tons
imported in March 2015, and slightly up from around 184,318 tons imported in April 2014.
China has exported around 34,400 tons of rice in first two months of 2015, down about 42%
from around 24,182 tons exported during the same period last year, according to data from the
China Customs General Administration.
In February 2015, China exported around 15,100 tons of rice, down about 22% from around
19,300 tons exported in January 2015 and over twice from around 641 tons exported in February
2014.
China imported about 2.563 million tons of rice and exported about 419,069 tons of rice and in
2014.

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USDA estimates China to produce around 146 million tons of milled rice in MY 2015-16 (July June). It estimates China to import around 4.4 million tons and export around 400,000 tons of
rice in 2015.

Brazil Paddy Rice Index Increases Slightly


from Last Week
Jul 14, 2015

The Brazilian paddy rice index maintained by CEPEA reached around 33.78 real per 50
kilograms as of July 10, 2015, up about 0.30% from around 33.68 real per 50 kilograms recorded
on July 3, 2015.
In terms of USD per ton, the index reached around $212 per ton on July 10, 2015, down about
1.50% from around $215 per ton recorded on July 3, 2015.

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Oryza U.S. Rough Rice Recap - Cash Offers


Hard to Come By as Price Ideas Jump with
Futures
Jul 14, 2015

The U.S. cash market was firmer today recovering from yesterdays losses with farmer price
ideas increasing everyday as the futures market gains strength.Analysts note that there is a
sizable amount of farmers with old crop left to sell who are hoping to see prices increase even
further however many are urging them to price their remaining inventory now before new crop
becomes available.

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Indian Basmati Rice Variety 1509 Not


Suitable for Exports, Say Millers
Jul 14, 2015

Rice millers from Indian state Haryana are avoiding procurement of new basmati variety 1509 as
it is not accepted in the international market, according to local sources.The All-Haryana Rice
Miller and Dealers Association has decided not to procure this variety as it fails to adhere to
export parameters due to high breakage levels.
The State Vice-President told local sources that the variety is being rejected by exporters as it
does not have sufficient demand among buyers. He noted that farmers have been preferring
planting this variety for its high yield, slender grain and early maturity, but exporters are facing a
lot of challenges. Only a few buyers from the Middle East countries are preferring this variety,
he added.

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Due to these reasons, millers have decided to advice farmers to stop cultivating this variety, the
President of a Rice Miller Association was quoted.
However, local sources noted that the inherent reason behind the millers rejecting the variety is
that the variety cannot mix well with other non-basmati varieties. Most of the buyers have been
preferring blended rice in which basmati rice is mixed with non-basmati varieties for the sake of
aroma.
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 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


July 14th, 2015

Long grain white rice - high quality


Thailand 100% B grade 400-410

Vietnam 5% broken

345-355

India 5% broken

385-395

Pakistan 5% broken

370-380

Myanmar 5% broken

415-425

Cambodia 5% broken

425-435

U.S. 4% broken 470-480

Uruguay 5% broken

535-545

Argentina 5% broken

530-540

Long grain white rice - low quality

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Thailand 25% broken

365-375

Vietnam 25% broken

325-335

Pakistan 25% broken

330-340

Cambodia 25% broken 410-420

India 25% broken

350-360

U.S. 15% broken

445-455

Long grain parboiled rice


Thailand parboiled 100% stxd

395-405

Pakistan parboiled 5% broken stxd

415-425

India parboiled 5% broken stxd 370-380

U.S. parboiled 4% broken

555-565

Brazil parboiled 5% broken

545-555

Uruguay parboiled 5% broken NQ

Long grain fragrant rice


Thailand Hommali 92% 830-840

Vietnam Jasmine

490-500

India basmati 2% broken

NQ

Pakistan basmati 2% broken

NQ

Cambodia Phka Mails

835-845

315-325

Vietnam 100% broken 310-320

Brokens
Thailand A1 Super

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Pakistan 100% broken stxd
Cambodia A1 Super

285-295

350-360

India 100% broken stxd 295-305

Egypt medium grain brokens

NQ

U.S. pet food 350-360


Brazil half grain NQ

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

CAFTA-DR Trade Pact Aids Dominican


Republic Farmers to Lower Rice Production
Costs by 30%
Jul 14, 2015

The Dominican Republic-Central America FTA (CAFTA-DR) free trade pact has helped
Dominican Republic farmers to lower their rice production costs by about 30% in the last three
years, according to local sources.

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The trade pact between the U.S. and group of Central American countries such as Costa Rica, El
Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic aims to promote
stronger trade and investment ties, prosperity, and stability throughout the region.
Free import of agricultural equipment from the U.S. under the pact has encouraged improved rice
cultivation methods by the farmers, according to the Agriculture Bank (Bagricola)
Administrator. He noted that farmers who were earlier using about 20 pounds of seed per 630
square meter (around 143 kilograms per hectare) are now using only six pounds (around 43
kilograms per hectare) due to improved cultivation methods. He added that production costs have
been reduced considerably by elimination of tillage, soil levelling and resorting to bulk planting.
He also noted that the improved equipment had reduced soil preparation costs by about 27 pesos
per sack of rice (around $0.6).
The Bagricola Administrator also told that the Bank has also been promoting rice production in
the country by providing loans to farmers. He noted that the Bank provided about RD$976.8
million (around $22 million) in loans to rice farmers covering about 72,000 hectares of rice area.
USDA estimates Dominican Republic to produce around 520,000 tons of rice in MY 2015-16,
down about 3% from around an estimated 538,000 tons in MY 2014-15. It estimates the country
to import around 15,000 tons of rice in 2015.

Oryza Overnight Recap Chicago Rough


Rice Futures Stabilize Just Under $11.000 as
Market Looks for Fundamental Support
Jul 14, 2015

Chicago rough rice futures for Sep delivery are currently seen trading 3.5 cents per cwt (about $1
per ton) higher at $10.970 per cwt (about $242 per ton) during early floor trading in
Chicago. The other grains are seen trading with mixed results this morning; soybeans are
currently seen trading about 0.1% higher, wheat is listed about 0.8% lower and corn is currently
noted about 1.4% lower.
U.S. stocks traded in a narrow range on Tuesday as investors eyed economic reports and
earnings that continued to indicate less-than-robust growth, amid news of a deal in Iran. Stock
index futures were narrowly mixed in early trade, with S&P and Dow futures extending losses
slightly after a retail sales showed a decline of 0.3%, missing expectations of a 0.3% increase.

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Stocks surged on Monday following news of a bailout deal between Greece and its creditors. In
other economic news, U.S. import prices unexpectedly fell in June as the lingering effects of a
strong dollar offset rising costs for petroleum products, keeping imported inflation pressure
under wraps. The data comes ahead of Federal Reserve Chair Janet Yellen's semi-annual
testimony before Congress on Wednesday andThursday.
Iran and six major powers early on Tuesday clinched a historic nuclear deal that will see some
sanctions against Tehran eased in exchange for restrictions on its nuclear program. Elsewhere,
European stocks traded mildly lower on concerns that the Greek parliament will struggle to pass
the legislation needed to secure a third bailout, while Asian shares were mixed with Chinese
shares ending a three-day winning streak to close just over 1% lower. Gold is currently trading
about 0.2% higher, crude oil is seen trading about 0.6% lower, and the U.S. dollar is currently
trading about 0.5% lower at 8:30am Chicago time.

Rice Farmers in Central, North Provinces of


Vietnam Advised to Shift to DroughtResistant Crops
Jul 14, 2015

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Vietnam's Ministry of Agriculture and Rural Development (MARD) has advised rice farmers in
the drought-ridden central and northern provinces to shift from rice to other drought-resistant
crops, according to local sources.
As the country's central and northern provinces have been facing worst drought in 40 years,
MARD's Plant Cultivation Department has reportedly sought the provincial governments'
assistance in issuing policies and supporting farmers in shifting from rice cultivation to other
crops. It has also asked them to provide capital support to farmers in order to compensate for
their losses as well as to restructure their farming activities.
The Ministry sources told that farmers are advised to shift from the 2014-15 winter-spring crop
as well as the 2015 summer-autumn crop in about 60% of the planned rice area of around 8,527
hectares in the two regions.
About 50,000 hectares of farm land across the country is reportedly affected by drought and the
Ministry sources noted that local provincial governments have taken measures such as digging
ponds, sourcing underground water, and dredging canals to try and provide water for irrigation
and daily use. They have also sought the hydroelectric plants to release water from their
reservoirs, said MARD. It added that around VND57.5 billion ($2.6 million) have been spent on
drought mitigation measures so far this year.
In May this year, the USDA Post estimated that the 2015 summer autumn crop would be planted
in about 7.7 million tons and is expected to produce around 15.95 million tons, basis paddy
(around 9.98 million tons, basis milled).
USDA estimates Vietnam to produce around 28 million tons of rice, basis milled (around 44.88
million tons, basis paddy) and export around 6.7 million tons in 2014-15 (January 2015 December 2015).

Philippines Slightly Raises Forecasts for 2015


Second Quarter Paddy Output
Jul 14, 2015

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The Philippines Statistics Authority (PSA) estimates Philippines' 2015 second quarter (April June) production at around 3.905 million tons, down about 4.1% from last year's 4.07 million
tons and up about 0.1% from April forecast of around 4.07 million tons, according to a news
release on its website.
The slight increase in PSA estimates can be attributed to an improvement in yield in irrigated
areas because of increased availability of water supply during growth stage, increased usage of
hybrid seeds and fertilizers as well as lesser infestation of pests.
However, the y/y decline in paddy production can be attributed to a decline in harvest area and
decline in yield due to adverse effects of dry spell, inadequate water supply and incidence of
pests in some provinces.
The PSA estimates the harvest area to decline to around 910,000 hectares from around 920,000
hectares last year. It however estimates the yield to increase to around 4.27 tons per hectare from
around 4.25 tons per hectare.

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Harvesting of the 2015 standing crop in about 815,000 hectares is complete, and planting is
complete in about 291,000 hectares or 33.3% of planting for the July-September 2015 crop is
complete, according to the PSA.
In April, the PSA forecasted paddy production in the first half of 2015 (January - June) at around
8.27 million tons, down about 1.32% from around 8.38 million tons last year.
USDA estimates Philippines MY 2015-16 (July - June) paddy rice production at around 19.683
million tons (around 12.4 million tons, basis milled), up about 4% from an estimated 18.857
million tons (around 11.88 million tons, basis milled) produced in the previous year. It estimates
the Philippines to import 1.7 million tons of rice in 2015 and around 1.3 million tons in 2016.

Thailand Approves $1.77 Billion in Loans for


Drought-Hit Rice Farmers
Jul 14, 2015

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The government of Thailand has approved loans of around $60 billion baht (around $1.77
billion) to support rice farmers impacted by drought, Reuters quoted the Finance Minister.
Thailand's Bank of Agriculture and Agricultural Cooperatives (BAAC) has approved loans for
about one million farmers following a meeting with the Finance Minister.
The loans constitute of short-term funds for emergencies to drought rehabilitation as well as
long-term funds to help farmers increase farm productivity with repayment periods ranging from
one to ten years. It has also been decided that farmers would be allowed to extend their debt
periods up to one year.
The Finance Minister told reporters that the loans would help farmers to recover from drought,
support jobs and develop production.
In the first week of July, Bloomberg reported that the BAAC was planning to approve 60 billion
baht (around $1.77 billion) loans to encourage rice farmers to shift to other crops. The BAAC
reportedly noted that half of the planned lending amount will be used for encouraging rice
farmers to shift to other crops and constitute short-term loans with an interest rate of 4% per
annum. The remaining half would support farmers to grow other crops over the next three years
and constitute three-year loans carrying an interest rate of 7% per annum.
Nearly 66 provinces in Central Thailand are battling drought and the government has
government has advised rice farmers to delay planting for the 2015 main rice crop until August,
when it is expecting rains to resume. The Office of Agricultural Economics (OAE) has estimated
that the output from 2015 main rice crop, which contributes to around 70% of the country's total
rice output, to decline about 14% to around 23.3 million tons from around 27.1 million tons last
year.

Thailand Rice Quotes Mixed Today; Pakistan


Rice Sellers Lower Some Their Quotes
Jul 14, 2015

Thailand rice sellers increased their quotes for 5% and 25% broken rice by about $5 per ton each
to around $390-$400 per ton and $365-$375 per ton respectively and lowered their quotes for
Hommali rice by about $35 per ton to around $830-$840 per ton today. Pakistan rice sellers
lowered their quotes for 5% broken rice and 25% broken rice by about $5 per ton each to around

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$370-$380 per ton and $330-$340 per ton respectively. India rice sellers kept their quotes mostly
unchanged today.
5% Broken Rice
Thailand 5% rice is indicated at around $390 - $400 per ton, up about a $5 per ton from
yesterday and about a $45 per ton premium on Vietnam 5% rice shown at around $345 - $355
per ton. India 5% rice is indicated at around $385 - $395 per ton, about $15 per ton premium on
Pakistan 5% rice shown at around $370 - $380 per ton, down about a $5 per ton from yesterday.
25% Broken Rice
Thailand 25% rice is shown at around $365 - $375 per ton, up about a $5 per ton from yesterday
and about a $40 per ton premium on Vietnam 25% rice shown at around $325- $335 per ton.
India 25% rice is indicated at around $350 - $360, about $20 per ton premium on Pakistan 25%
rice shown at around $330 - $340 per ton, down about a $5 per ton from yesterday.
Parboiled Rice
Thailand parboiled rice is indicated at around $395 - $405 per ton. India parboiled rice is
indicated at around $370- $380 per ton, about a $45 per ton discount to Pakistan parboiled rice
shown at around $415 - $425 per
ton.

100% Broken Rice


Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, on par with Vietnam
100% broken rice shown at around $315 - $325 per ton. India's 100% broken rice is shown at
around $295 - $305 per ton, about a $10 per ton premium on Pakistan broken sortexed rice
shown at around $285 - $295 per ton.

Uruguayan Rice Farmers Fear Drought to


Threaten 2015-16 Rice Harvests; Caribbean
Islands Too Face Difficult Times
Jul 14, 2015

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Uruguayan rice farmers are facing a double whammy with extending dry weather
conditions on one hand and falling water levels in dams, rivers and ponds on the
other, Bloomberg quoted local sources.

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The country, which planted rice in about 170,000 hectares and produced a paddy
yield of around 8.7 tons per hectare in 2014, is doubtful of maintaining this pace
this year. Water levels in dams across the country are currently below at their
minimum levels. Normally, they should be half their capacity by this time of the
year.
Rice planting in Uruguay usually begins in October and continues till December,
and rice is harvested between March and May. Though farmers still have over two
months before beginning rice planting operations, they are concerned of extremely
low water levels. They told local sources that if the situation does not improve by
the time they start sowing seeds for the 2015-16 crop, rice harvests may be
critically impacted.
An impending rice trade agreement with Venezuela, under which Uruguay will
supply rice to the neighboring nation, is expected to bring cheers to the Uruguayan
rice community.
USDA estimates Uruguay to produce around 1.036 million tons of milled rice in
2015-16 (April - March), up about 1.4% from an estimated 1.022 million tons last
year. It estimates Uruguay to export around 950,000 tons of rice in 2015, up about
7% from an estimated 890,000 tons in 2014-15.
Caribbean Islands Enduring Worst Drought in Five Years
Meanwhile, continuing dry weather conditions in the Caribbean countries such as
Jamaica, Puerto Rico, Trinided & Tobago and Dominican Republic, are posing
challenges to their governments, according to Bloomberg. The governments of
most of these countries have started water rationing for agriculture and domestic
purposes in order to bear with the persisting dry conditions and less rains.
The Barbados-based Caribbean Institute for Meteorology & Hydrology is
expecting the drought conditions to extend till September this year. However, the
U.S. National Oceanic and Atmospheric Administration noted that there is at least
a 90% chance that El Nino, which causes droughts in Asia and South America, will
last through next winter and an 80% chance that it will continue until spring 2016.

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