Daily Exclusive ORYZA Rice E-Newsletter

Febuary 23,2016
Vol 7,Issue II

www.ricepluss.com

www.riceplusmagazine.blogspot.com

Daily Exclusive ORYZA Rice E-Newsletter

China Rice Imports Increase Sharply y/y in

January 2016
Feb 22, 2016

China imported around 287,200 tons of rice in January 2016, about 2.3 times from around
122,400 tons imported during the same period last year, according to data from China Customs
General Administration.
Month-on-month, China's rice imports in January 2016 declined about 27% m/m from around
395,500 tons in December 2015.
In January 2016, China exported around 22,200 tons of rice, down about 20% from around
27,900 tons exported in December 2015 and up about 15% from around 19,300 tons exported in
January 2015.
China imported about 3.35 million tons of rice in 2015, up about 31% from around 2.56 million
tons imported in 2014. China exported about 285,800 tons of rice in 2015, down about 32% from
around 419,069 tons in 2014.
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USDA estimates China to produce around 145.77 million tons of milled rice in MY 2015-16
(July - June). It estimates China to import around 4.7 million tons and export around 450,000
tons of rice in 2016.

El Nio Damages $24 Million Worth Rice

Crops So Far in Philippines, Says Agriculture
Department
Feb 22, 2016

Extending dry conditions due to the El Nio phenomenon have damaged about 94,934 tons of
rice worth P1.62 billion (around $24 million) as of February 18, 2016 in the Philippines,
Business Mirror quoted a report by the Department of Agriculture (DA).
The report showed that about 59,463 hectares of paddy are affected, but about 40,221 hectares
have a chance of recovery. Based on the latest projections by the Philippine Statistics Authority
(PSA),the DA Field Operation Service Officer in Charge told reporters that the effects of El Nio
to rice production in the first half of 2016 would be minimal.
The PSA estimates the Philippines 2016 first half paddy rice production at around 8.2 million
tons, down about 1.5% from around 8.32 million tons in 2015. The Philippines paddy production
in 2015 declined about 4.31% to around 18.15 million tons, down from around 18.97 million
tons in 2014 due to the El Nio phenomenon.
Around 304,104 tons of total crops worth P4.002 billion (around $84 million) from around
194,056 hectares are affected by the El Nino, according to the report.
Meanwhile, the Philippine Atmospheric, Geophysical and Astronomical Services Administration is
expecting the El Nio to gradually weaken from March to May this year, while El Nio-Southern
Oscillation (Enso)-neutral is likely between May to July 2016. Enso-neutral refers to a period when
neither El Nio nor La Nia is present

FAO Forecasts Japan MY 2015-16 Rice

Imports at 700,000 Tons
Feb 22, 2016

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The UN's Food and Agricultural Organization (FAO) forecasts Japan's MY 2015-16 (April March) rice imports at around 700,000 tons. It estimates the country's total cereal imports at
around 24 million tons. Cereal imports cover nearly 60% of the total domestic cereal utilization.
The FAO forecasts Japan's 2015 paddy rice production at around 10.2 million tons, down about
5% from 10.77 million tons in 2014 due to a reduction in the paddy area reflecting a decline in
prices.

European Commission Reduces

Maximum Residue Level of
Pirimiphos-Methyl Insecticide in Rice
Cultivation Feb 22, 2016
The European Commission (EC) has reduced the maximum residue level (MRL) for the
pirimiphos-methyl insecticide to 0.5 parts per million (ppm/milligrams per kilogram) for rice
cultivation under the regulation Reg.53/2016 from the earlier 5 ppm under the previous
regulation Reg.396/2005 in accordance with the guidance provided by the European Food Safety
Authority (EFSA), according to local sources.
The pirimiphos-methyl insecticide used to prevent and combat infestations by storerooms and
stored products, contained in various commercial products authorized for the treatment of
foodstuffs or for storage rooms.
The EC has also allowed for similar reduction of MRL for the insectide in corn, rye and
buckwheat cultivation, while it as retained at the earlier level for other cereals.
The Reg. 53/2016 EU came into force on February 9, 2016, but under the article 2, it apples to
agricutlural products marketed after August 9, 2016. Until then the MRLs will be applicable
under the Reg. 396/2005.
The development may demand more attention in the management of warehouses and stored
paddy.

Government of South Korea Plans to Use

Black Rice in Medicines, Health Products
Feb 22, 2016

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South Korea's Rural Development Administration is planning to encourage local companies to

produce medicines and other health products using black rice as it contains one of the highest
levels of anthocyanin antioxidants, which act as anti-cancer agents, according to Arirang News.
Black rice is also known to act as an anti-ageing agent and prevent various diseases.
A recent research report also proved that black rice also fights against obesity. Researchers noted
that substances found in the outermost layer of black rice are found to inhibit lipogenesis and fat
absorption. They conducted a study in which they fed ten out of 20 mice with black rice extract
for three months, and found that the mice that were fed with the extract saw a nearly 26%
reduction in obesity index and 27% reduction in abdominal fat. They also found that the blood
cholesterol in the experimental group of mice was reduced by about 10%.
Recently, another study also showed that post-menopausal women who took black rice extract
capsules for 12 weeks could see more than 5% reduction in abdominal fat.
Considering the various health benefits associated with black rice, Koreas rural department has
decided to transfer its extraction technology to companies to help then produce and promote
medicines and other health products.

Oryza U.S. Rough Rice Recap - Prices Fall

after Iraqi Tender Offers Revealed
Feb 23, 2016

The U.S. cash market was seen softer today after offers on the latest Iraqi tender were revealed,
leading some market participants to believe Iraq will scrap the tender for U.S. origin only.
It was reported that 30,000 tons of U.S. origin was offered at $597 PMT CIF free out while
another 90,000 tons were offered at $597.86 PMT CIF free out.
Although the tender only called for U.S. origin, one company offered 60,000 tons from Uruguay
at $511 PMT CIF free out and 60,000 tons from Argentina at $501.50 PMT CIF free out.
Analysts note that no purchase decision has been made as of yet and that the offers remain valid
until February 25th, however the Iraqi Grain Board regularly extends tender deadlines.

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FAO Forecasts Malaysia 2015-16 Rice

Imports to Increase on Strong Domestic
Demand
Feb 22, 2016

The UN's Food and Agriculture Organization (FAO) forecasts Malaysia's MY 2015-16 (JulyJune) rice imports to increase despite an estimated record rice production in 2015 due to a strong
Domestic Demand. The FAO estimates Malaysia's 2015-16 total cereal imports, including rice,
to increase about 2% y/y to around 6.5 million tons.
The FAO forecasts Malaysia's 2015 paddy rice production at a record 2.7 million tons, up about
2% from around 2.645 million tons in 2014 despite a slight contraction in paddy area due to
favourable weather conditions, increased yields and continued government support to the rice
sector.
Planting of the 2016 paddy crop is nearing completion. However, concerns of El Nino induced
dry conditions during the northeast monsoon period (December-March) are likely to impact the
potential of the 2016 paddy crop.

Oryza CBOT Rough Rice Futures Recap Chicago Rough Rice Futures Tumble as
Offers on Iraqi Tender Revealed
Feb 23, 2016

Chicago rough rice futures for Mar delivery settled 31.5 cents per cwt (about $7 per ton) lower at
$10.705 per cwt (about $236 per ton). The other grains finished the day with mixed results;
Soybeans closed about 0.4% higher at $8.8425 per bushel; wheat finished about 0.6% lower at
$4.6400 per bushel, and corn finished the day about 0.8% higher at $3.7225 per bushel.
U.S. stocks traded more than 1% higher Monday, trying to build on their best weekly gain of
2016, as oil prices climbed. WTI futures for March delivery, which expire after the settle
Monday, traded about 7% higher near $31.70 a barrel after the International Energy Agency said
in its medium-term outlook Monday that U.S. shale oil production was expected to fall by
600,000 barrels per day (bpd) this year and another 200,000 bpd in 2017. U.S. crude briefly
climbed above $32 a barrel at session highs. The forecast added to last week's drop in U.S. oil rig
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Daily Exclusive ORYZA Rice E-Newsletter

count to their lowest level since December 2009, according to Reuters. OPEC General Secretary
Abdalla Salem El-Badri is scheduled to speak at the CERAWeek energy conference in Houston
later on Monday. Globally stocks gained, with European stocks more than 1.5% higher and the
Shanghai composite jumping more than 2% to lead gains in Asian equities. The Chinese yuan
held steady overnight. In U.S. economic news, the flash read on Markit Manufacturing PMI for
February was 51.0, down from the final January print of 52.4 and hitting its lowest since October
2012. In afternoon trade, the Dow Jones industrial average rose 263 points, or 1.61%, to 16,655.
The S&P 500 gained 28 points, or 1.5%, to 1,946, with energy leading all 10 sectors higher. The
Nasdaq composite rose 71 points, or 1.6%, to 4,575. Gold is seen trading about 1.8% lower,
crude oil is seen trading about 5.8% higher, and the U.S. dollar is seen trading about 0.9% higher
at about 1:00pm Chicago time.
Friday, there were 1,699 contracts traded, up from 1,018 contracts traded on Thursday. Open
interest the number of contracts outstanding on Friday decreased by 360 contracts to 12,773.

Iraq Passes On Tenders to Purchase 90,000

Tons of U.S. Rice
Feb 22, 2016

Iraq has passed on tenders to purchase around 90,000 tons of U.S. non-glutinous rice in tenders,
which closed on February 21, 2016 with the offers having to remain valid till February 25,2016,
Reuters quoted the European traders.
The Iraqi Grain Board (IGB) reportedly received the lowest offer to supply 30,000 tons of U.S.
rice at $597 per ton (c&f). Though, the tender had sought only the U.S. rice, the same company
that offered lowest bid for 30,000 tons of U.S. rice also offered to supply 60,000 tons of Uruguay
rice at $511 per ton (c&f) and 60,000 tons of Argentina rice at $501.50 per ton (c&f).
Other offers for the U.S. rice were reportedly made at $597.86 per ton, $612 per ton and $635
per ton (all c&f).

FAO Forecasts South Korea to Import

440,000 Tons of Rice in 2016
Feb 22, 2016

The UN's Food and Agriculture Organization (FAO) forecasts South Korea to import 440,000
tons of rice in 2016. The FAO forecasts South Korea's total cereal imports in MY 2015-16
(October-September) to increase slightly over the previous year due to an increase in wheat
imports.
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Daily Exclusive ORYZA Rice E-Newsletter

The FAO estimates South Korea's 2015 paddy rice production at around 5.8 million tons, up
about 2% from around 5.638 million tons in 2014 due to favourable weather conditions, which
boosted yields to an all-time record of 7.2 tons per hectare.
The government is currently facing problem of increasing supplies (from production and
imports) and falling consumption. It is planning to strike a balance between rice supply and
demand by 2018 through a gradual reduction in paddy production and an increase in
consumption.
USDA estimates South Korea to produce around 4.3 million tons of milled rice and import
around 470,000 tons in MY 2015-16 (November - October).

Pakistan Rice Export Earnings Decline

Sharply in First Seven Months of FY 2015-16
Despite Increase in Tonnage
Feb 22, 2016

Pakistan exported around 2.445 million tons of rice (including 223,634 tons of basmati and 2.22
million tons of non-basmati) in the first seven months of FY 2015-16 (July 2015 - January 2016),
up about 11% from around 2.196 million tons (290,013 tons of basmati and 1.91 million tons of
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Daily Exclusive ORYZA Rice E-Newsletter

non-basmati) exported during the same period in FY 2014-15, according to provisional data from
the Pakistan Bureau of Statistics (PBS).
However, Pakistan's rice exports declined in terms of value during the said period. Pakistan
earned around $1,026 million during the seven months of FY 2015-16, down about 13% from
around $1,181 million earned last year. The decline is attributed to a sharp decline in global rice
prices as well as a slow demand.
In January 2016, Pakistan exported around 390,223 tons of rice, down about 18% from around
475,346 tons exported in December 2015 and down about 6% from around 413,660 tons
exported in January 2015. In terms of value, Pakistan earned about $158 million in January 2016,
down about 13% from around $180.9 million earned in December 2015 and down about 23%
from their year-ago levels of around $204.6 million.
Pakistan exported around 34,550 tons of basmati rice in January 2016, down about 13% from
around 39,589 tons exported in December 2015, and down about 10% from around 38,517 tons
exported in January 2015. In terms of value, Pakistan's basmati rice exports earned $33 million
in January 2016, down about 3% from around $34 million earned in December 2015, and down
about 23% from around $43 million earned in January 2015.
Pakistan exported around 355,673 tons of non-basmati rice in January 2016, down about 18%
from around 435,757 tons exported in December 2015 and down about 5% from around 375,143
tons in January 2015. In terms of value, Pakistan's non-basmati rice exports earned $125 million
in January 2016, down about 15% from around $147 million earned in December 2015, and
down about 22% from around $161 million earned in January 2015.

Vietnam Rice Sellers Increase Their Quotes

Today; Other Asia Rice Quotes Unchanged
Feb 22, 2016

Vietnam rice sellers increased their quotes for 5% broken rice, 25% broken rice and 100%
broken rice by about $5 per ton each to around $350-$360 per ton, $340-$350 per ton and $325$335 per ton respectively today. India and Pakistan rice sellers kept their quotes unchanged
today. Thailand rice sellers are out today due to national holiday.
5% Broken Rice
Thailand 5% rice is indicated at around $355 - $365 per ton, about $5 per ton premium on
Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $360
- $370 per ton, about $20 per ton premium on Pakistan 5% rice shown at around $340 - $350 per
ton.
25% Broken Rice
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Daily Exclusive ORYZA Rice E-Newsletter

Thailand 25% rice is indicated at around $345 - $355 per ton, about $5per ton premium on
Vietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around
$325 - $335 per ton, about $20 per ton premium on Pakistan 25% rice shown at around $305 $315 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $365 - $375per 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 $325 - $335 per ton, on par with Vietnam
100% broken rice shown at around $325 - $335 per ton. India's 100% broken rice is shown at
around $260 - $270 per ton, about $25 per ton discount to Pakistan broken sortexed rice shown at
around $285 - $295 per ton.

Thai Commerce Ministry Confirms No Loss

of Stocks Under Rice Pledging Scheme
Feb 22, 2016

Thailand's Commerce Ministry has confirmed that there was no loss of rice stocks under the
previous government's rice pledging scheme as testified by an auditor to the court, according to
Bangkok Post.
The Ministry noted that the difference in figures had occurred due to incorrect bookkeeping
method used. The weight of the rice sacks had not been accounted for by the auditor, it said.
Separately, a rice-pledging scheme investigation panel seeking financial compensation from expremier Yingluck Shinawatra has submitted its findings to the government. The panel found that
the former Premier had committed dereliction of duty in overseeing the implementation of the
scheme. But it stated that the scheme itself did not cause any damage to the state.

Vietnam Rice Exports Increase Sharply y/y in

January 1 February 18, 2016
Feb 22, 2016

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Daily Exclusive ORYZA Rice E-Newsletter

Vietnam exported around 589,646 tons of rice in January 1 - February 18, 2016, up about 40%
from around 421,202 tons of rice exported in first two months of 2015, according to data from
the Vietnam Food Association (VFA). The average rice export price so far in this year stands at
around $400 per ton (FOB), down about 11% per ton from around $452 per ton recorded during
same last year.
During February 1-18, 2016, Vietnam exported around172,875 tons of rice, down about 14%
from around 200,814 tons rice exported in full month of February 2015, and down about 59%
from around 416,770 tons rice exported in full month of January 2016. The average export price
so far in February stands at around $382 per ton, down about 16% per ton from a year ago and
down about 6% per ton from a month ago.

Global Rice Quotes

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Daily Exclusive ORYZA Rice E-Newsletter

February 23rd, 2016
Long grain white rice - high quality
Thailand 100% B grade 365-375

Vietnam 5% broken
350-360

India 5% broken
360-370

Pakistan 5% broken
340-350

Myanmar 5% broken 420-430

Cambodia 5% broken 410-420

U.S. 4% broken 460-470

Uruguay 5% broken
440-450

Argentina 5% broken 430-440

Long grain white rice - low quality

Thailand 25% broken 345-355

Vietnam 25% broken 340-350

Pakistan 25% broken 305-315

Cambodia 25% broken 395-405

India 25% broken

325-335

U.S. 15% broken (sacked)

440-450

Long grain parboiled rice

Thailand parboiled 100% stxd 365-375

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% 680-690

Vietnam Jasmine
415-425

India basmati 2% broken

NQ

Pakistan basmati 2% broken NQ

Cambodia Phka Mails 760-770

Brokens
Thailand A1 Super
325-335

Vietnam 100% broken 325-335

Pakistan 100% broken stxd

285-295

Cambodia A1 Super
335-345

India 100% broken stxd

260-270

Egypt medium grain brokens NQ

U.S. pet food 280-290

Brazil half grain

NQ

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

Exclusive News have been shared with written permission of ORYZA.com with thanks

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