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Daily Exclusive ORYZA Rice E-Newsletter

February 25,2016
Vol 7,Issue II



Daily Exclusive ORYZA Rice E-Newsletter

Cuba Signs New Credit Agreements with

China to Develop Rice Sector
Feb 24, 2016

The government of Cuba has signed new credit agreements with the Export-Import Bank of
China (Eximbank) to receive support from the East Asian nation for the development of
agriculture and railroad programs, according to local sources.
The amounts would be used to purchase medium and high power tractors to boost rice
production and railroad passenger cars.
This is the fourth line of credit that Cuba obtains from China, and is mainly aimed at increasing
local rice production, according to the Cuban Deputy Minister of Finance and Prices. He also
noted that the credit would be used for other joint projects linked to the country's strategic
Cuba currently produces only half of its annual rice consumption needs and imports the rest.
USDA estimates Cuba to produce around 395,000 tons of milled rice and import around 500,000
tons of rice in MY 2015-16 (July - June) to meet a consumption demand of around 895,000 tons.
Cuba currently imports rice from Brazil, India and Thailand.

FAO Forecasts Iran to Import 1.2 Million

Tons of Rice in 2015-16 Despite 17% y/y
Increase in Production
Feb 24, 2016

The UN's Food and Agriculture Organization (FAO) forecasts Iran to import about 1.2 million
tons of rice in 2015-16 (April-March) despite an increase in 2015 paddy rice production. It
forecasts the country's total cereal imports to decline about 35% y/y to around 10 million tons.
The FAO estimates Iran's 2015 paddy rice production to increase by about 17% to around 2.7
million tons from around 2.3 million tons during the previous year.
Planting for 2016 paddy rice crop will begin in May.

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EU Imports 572,619 Tons of Rice in

September 1, 2015 - February 16, 2016; Up
23% from Previous Year
Feb 24, 2016

According to the latest data issued by the European Union (EU), rice imports by the EU
increased sharply since the beginning of the crop year 2015-16 (September 1, 2015 - August 31,
The EU imported about 572,619 tons of rice during the period September 1, 2015 - February 16,
2016, up about 22.5% from around 467,256 tons imported during the same period last year.
Japonica rice imports increased about 43% to around 59,570 tons in September 1, 2015 February 16, 2016 period from around 41,741 tons during the same period last year. Indica rice
imports increased about 20.6% to around 513,049 tons during the said period from around
425,515 tons last year.
The UK remained the largest importer in September 1, 2015 - February 16, 2016 period with
around 127,867 tons followed by France (95,218 tons), The Netherlands (64,495 tons), Germany
(60,871 tons), Poland (41,907 tons), , and Italy (40,210 tons). Other EU countries imported
142,051 tons.

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During the week ended February 16, 2016, the EU imported around 42,196 tons of rice, up about
43% from around 29,564 tons imported during the week ended February 9, 2016.
The EU imported around 1.143 million tons of rice in the crop year 2014-15, up about 12.7%
from around 1.013 million tons imported in the crop year 2013-14.

Global Rice Quotes

February 24th, 2016
Long grain white rice - high quality
Thailand 100% B grade 365-375

Vietnam 5% broken


India 5% broken


Pakistan 5% broken


Myanmar 5% broken


Cambodia 5% broken


U.S. 4% broken 455-465

Uruguay 5% broken


Argentina 5% broken


Long grain white rice - low quality

Thailand 25% broken


Vietnam 25% broken


Pakistan 25% broken


Cambodia 25% broken 395-405

India 25% broken


U.S. 15% broken (sacked)



Long grain parboiled rice

Thailand parboiled 100% stxd

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Pakistan parboiled 5% broken stxd


India parboiled 5% broken stxd 350-360

U.S. parboiled 4% broken


Brazil parboiled 5% broken


Uruguay parboiled 5% broken NQ

Long grain fragrant rice

Thailand Hommali 92% 670-680

Vietnam Jasmine


India basmati 2% broken


Pakistan basmati 2% broken


Cambodia Phka Mails



Vietnam 100% broken 325-335

Thailand A1 Super

Pakistan 100% broken stxd

Cambodia A1 Super



India 100% broken stxd 260-270

Egypt medium grain brokens


U.S. pet food


Brazil half grain NQ

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

Oryza CBOT Rough Rice Futures Recap Chicago Rough Rice Futures Rebound

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Slightly as Mixed U.S. Grains Provide Little

in the Way of Price Guidance
Feb 25, 2016

Chicago rough rice futures for Mar delivery settled 6.5 cents per cwt (about $1 per ton) higher at
$10.660 per cwt (about $235 per ton). The other grains finished the day with mixed results;
Soybeans closed about 0.1% lower at $8.7250 per bushel; wheat finished about 1% lower at
$4.5125 per bushel, and corn finished the day about 0.6% lower at $3.6450 per bushel.
U.S. stocks traded mostly lower Wednesday, with financials leading declines, as investors
watched for stabilization in oil prices. The major U.S. averages came well off session lows in
midday trade as oil recovered from a sharp overnight decline to trade near $32 a barrel.
Financials traded about 1% lower to lead S&P 500 decliners, while energy and materials
reversed losses to trade higher. The S&P briefly fell below the psychologically key 1,900 level,
although the index traded more than 10% below its 52-week intraday high, in correction territory
along with the Dow and Nasdaq composite.
Traders said there was not a fundamental reason for the decline in stocks following the services
PMI given the light trade volume and the relative newness of the indicator. European stocks
closed about 2% lower or more. The STOXX Europe 600 fell nearly 3%, ending almost 40%
below its 52-week intraday high. Overnight, the Chinese yuan midpoint fix was also set slightly
weaker against the dollar. However, the Shanghai composite closed about 0.9% higher while
most Asian equities declined. In midday trade, the Dow Jones industrial average fell 120 points,
or 0.73%, to 16,311. The S&P 500 declined 11 points, or 0.58%, to 1,910, with financials
leading nine sectors lower and telecommunications the only decliner. The Nasdaq composite fell
11 points, or 0.27%, to 4,491. Gold is seen trading about 1.3% higher, crude oil is seen trading
about 0.1% higher, and the U.S. dollar is seen trading about 0.1% lower at about 1:30pm
Chicago time.
Tuesday, there were 3,959 contracts traded, up from 3,243 contracts traded on Monday. Open
interest the number of contracts outstanding on Tuesday increased by 189 contracts to

Higher Domestic Prices May Increase

Japanese Rice Imports, Say Traders
Feb 24, 2016

Japanese rice traders are expecting the country to import more rice this year due to an increase in
domestic prices, according to Asian Nikkei.

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Domestic prices are said to have increased about 10% y/y to around 227 yen per kilogram
(around $2,021 per ton) excluding taxes in January this year due to higher demand from the
animal feed industry. The government is keen on increasing the use of rice for animal feed and
reduce the use of corn and wheat.
They told reporters that meanwhile export prices of medium-grain polished Californian rice,
which many Japanese restaurants use together with domestic rice, has declined about 17% y/y to
around $775 per ton (around 87 yen per kilogram) in January this year. Californian rice prices
increased over the last few years due to four consecutive years of drought. Traders attributed the
fall in prices to a likely increase in California rice supply this year due to resumption of rains
allowing farmers to plant more rice. They also noted that Californian rice prices have declined
due to a fall in demand from the Middle East countries due to drought-related high prices.
The domestic prices are nearly two-and-half times the Californian rice, up from less than twice
the price in 2014. A trader noted that due to a short supply of low-priced rice for commercial use,
most of the restaurants are considering imported rice.
Therefore, traders are opining that the widening gap between the domestic and imported prices
could prompt more rice imports this year.
Japan's imports under the "simultaneous buy-sell" system have doubled so far in FY 2015-16
(April-March) to 22,000 tons. But they are below the maximum annual import threshold of 100,000 tons

Thailand Sets 2016 Rice Export Target at 9.5

Million Tons, Down 5% from Last Year
Feb 24, 2016

The government of Thailand has set its 2016 rice export target at around 9.5 million tons, down
about 5% from around 10 million tons exported in 2015, due to a likely impact of extending
drought conditions on this year's production, Reuters quoted a senior official from the Thai
Commerce Ministry.
The Director-General of the Ministry's Foreign Trade Department noted that lower supplies from
this year's crop may lead to an increase in Thai rice prices.
She also noted that the Commerce and Agriculture Ministries have prepared 10 billion baht
(around $278 million) worth of measures to stabilize prices. Some of the measures include
buying rice from farmers and storing it temporarily, she said.

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Separately, the Thai Prime Minister reportedly urged farmers to cultivate less rice to cope with
the intensifying water crisis. "We have to find measures to motivate rice farmers to change to
other crops (than rice)," he was quoted.
The military government currently holds about 12 million tons of rice in its stockpiles and is
keen on clearing the stocks by the end of next year.
In a recent report, the USDA Post forecast Thailand's MY 2015-16 (January - December 2016)
paddy rice production at around 24 million tons, down from last year's 29.4 million tons. It
forecast Thai off-season paddy production to decline about 57% y/y to around 3.1 million tons.

Thailand, Pakistan Rice Sellers Lower Some

of Their Quotes Today; Other Asia Rice
Quotes Unchanged
Feb 24, 2016

Thailand rice sellers lowered their quotes for Hommali rice by about $10 per ton to around
$670-$680 per ton today. Pakistan rice sellers lowered their quotes for 5%broken rice by about
$5 per ton to around $335-$345 per ton. Other Asia rice sellers kept their quotes unchanged
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 $25 per ton premium on Pakistan 5% rice shown at around $335 - $345 per
25% Broken Rice
Thailand 25% rice is indicated at around $345 - $355per 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 - $375 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.

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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.

World Bank Economist Advises Philippines

to Open Rice Import Market
Feb 24, 2016

The World Bank Lead Economist advised the government of the Philippines to remove
quantitative restrictions on rice imports and open the rice import market to avoid unnecessary
price increases and enhance the efficiency of the rice sector, according to the Manila Times.
Speaking at the Manila Times 3rd Business Forum, he noted that the government's current
policy of monopolizing the rice imports is not in the interest of the farmers and the country. He
also noted that the policy will not work to increase the net income of the farmers or check the
retail rice prices.
He stated that the government is failing to achieve the rice self-sufficiency due to a significant
gap between production and consumption. He said the government's policy of buying high
from farmers and selling low to the poor suggests increasing inefficiency". He stressed that
opening the rice import market would correct these inefficiencies as traders have sufficient time
to import and thus domestic rice price increases can be avoided.
He suggested that the government should remove the QRs and tariff quotas in the medium term,
and should "progressively reduce" tariffs in the long term to achieve desired results.
He also noted that investments in agricultural productivity, specifically on research and
development, agricultural extension, rural infrastructure such as roads irrigation and
electrification; secure property rights; and farmers health and education are important to
increase the efficiency of the rice sector.

Myanmar Commerce Ministry Estimates

2015-16 Rice Exports to Decline Sharply
Feb 24, 2016

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Myanmar's Ministry of Commerce is estimating the country's rice exports to fall sharply in FY
2015-16 (April - March) based on the current pace of exports, according to Irrawaddy News.The
Ministry data shows that Myanmar has so far in this fiscal year exported about 1.037 million
tons, down about 17% from around 1.255 million tons exported during the same period last year.
Myanmar exported 1.84 million tons of rice in FY 2014-15, with China accounting for about
70% of the country's exports.
We wont match last years record, with the major reasons being the floods last year [in July
and August] and the fact that some rice exporters and traders are concerned about not having rice
for the summer [because of El Nio], so theyre storing rice, the Director of the Ministry of
Commerce was quoted. He also noted that traders are prepared for higher rice prices due to likely
low production.Last week, the Myanmar Rice Federation (MRF) has urged the government to
prepare rice reserves due to likely lower output from extending dry conditions.According to
official figures, Myanmar produced about 13 million tons of milled rice in FY 2014-15 from
around 57.5 million hectares of land. USDA estimates Myanmar to produce about 12.2 million
tons of rice in MY 2015-16 (January December 2016). It estimates Myanmar to export about
1.8 million tons in 2016.

Uganda Needs Improved Farming Tools to

Boost Rice Production, Say Experts
Feb 24, 2016

Experts emphasized the need for improved and modernized farming tools to boost Uganda's rice
production, according to All Africa.The Director of the National Crops Resources Research
Institute (NaCRRI) noted that Uganda's rice production is currently characterized by traditional,
rudimentary and obsolete technologies. The official who attended the demonstration of
agricultural machinery for small-scale farmers noted that an increasing demand for rice calls for
intensive production of high-yield rice."We have achieved rice production self-sufficiency.
National rice production is 306,000 tonnes today. But the increase in population and increasing
demand, especially in urban areas, means new farmers need to be engaged in rice production and
those farmers who are already producing rice should adopt better farming methods to increase
their rice yields," he said.
The country's national rice development strategy aims to increase rice production to 443,800 tons
in 2018. The Promotion of Rice Development (PRiDe) project, which is being implemented by
Japan International Cooperation Agency (JICA), ministry of Agriculture, Animal Industry and
Fisheries, and National Agricultural Research Organization, and National Agricultural Advisory
Services (Naads) is reportedly supporting Uganda to achieve its national rice production
targets.The Chief Advisor of PRiDe project noted that broken grains and stones in rice are major
drawbacks of Uganda rice. He stressed for the need of affordable threshing machines to increase
the quality of rice.
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