8th 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 8 ,2015




NFA Collaborates with IRRI to Improve Rice

Quality in Philippines

Jun 05, 2015

The Philippines National Food Authority (NFA) has collaborated with the International Rice

Research Institute (IRRI) to promote and accelerate research in rice and rice-based farming

systems as part of efforts to enhance rice quality in the country, according to a news release on

the IRRI website.Improvement in rice quality includes enhancement in rice farming technologies

and practices that help ensure sustainable agriculture, improved farmer welfare, grain quality,

and dietary practices that support improved nutrition and health among consumers, according to

the news release.




Both the institutes have signed a Memorandum of Understanding (MOU) today highlighting

their collaboration in grain quality improvement; rice breeding, production, and processing (post-

harvest) technologies; and the establishment of quality standards in line with global

requirements. Both the NFA and the IRRI will share scientific data and research results as well

as strategic analysis of developments and trend in global rice trade, according to the MOU. The

will also work together to ensure benefits to all the rice stakeholders in the country."Through this

agreement, the NFA hopes to maximize IRRI's research in achieving our food security mission

of providing the country’s rice requirements in terms of volume and quality. This will also guide

us in our decision-making, not only in our operational activities but also in our policy-

formulation, in anticipation of future developments such as infrastructure build-up," said the

NFA Administrator."We are happy to share technologies, some partly developed through work

funded by the Department of Agriculture on grain quality and forecasting, with NFA," added the

IRRI Deputy Director General

Myanmar to Begin First Legal Rice Shipment

to China Soon

Jun 05, 2015




Myanmar is likely to begin legal rice exports to China shortly, according to local sources. The

Myanmar Agribusiness Public Company Limited (MAPCO) has agreed to ship about

3,000 tons of rice according to the the recently signed Memorandum of Understanding (MOU)

between the Myanmar Rice Federation (MRF) and China's state-owned China National Cereals,

Oils and Foodstuffs Corporation (COFCO) to export 100,000 tons of rice this year, local sources

quoted the MRF.

Though the MRF shortlisted about nine companies to export rice under the MOU, MAPCO was

the first to take up the export responsibilities, according to local sources. It has apparently invited

companies to invest in their operation to the extent of 10 million Kyat (around $9,043) per

company. “MAPCO will coordinate to buy and sell the rice with these investments and will

provide transparent financial documents. The cost per share will be changed according to

demand,” said the Treasurer of the MRF.According to the MOU, the Chinese authorities are

demanding rice that is grown systematically, as well as stored systematically and hygienically.

The China Certification & Inspection Group (CCIC) was supposed to examine the rice slated for

export between May 22 and June 1 this year as per the MOU.

Cross-border rice exports to China are reportedly very rampant. Around 1.1 million tons of rice

have been exported in the first nine months of 2014-15, of which 800,000 tons comprise of

exports to China through the borders. The Myanmar government is targeting to export around 2.5

million tons of rice in FY 2015-16 (April - March), up about 67% from an estimated 1.5 million

tons in FY 2014-15.USDA estimates Myanmar to produce 20 million tons of paddy rice (around

12.8 million tons, milled basis) and export around 2 million tons of rice in MY 2015-16 (January

- December 2015).

Oryza Afternoon Recap - Chicago Rough

Rice Futures Slide but Remain Nearly 30

cents Higher on the Week; Wheat Erases

Early Gain to Close in the Red

Jun 05, 2015

Chicago rough rice futures for Jul delivery settled 12 cents per cwt (about $3 per ton) lower at

$9.805 per cwt (about $216 per ton). The other grains finished the day lower; Soybeans closed




about 0.9% lower at $9.3775 per bushel; wheat finished about 1.3% lower at $5.1700 per bushel,

and corn finished the day about 0.8% lower at $3.6050 per bushel.U.S. stocks traded narrowly

mixed on Friday as investors eyed developments in Greece and weighed a bond yield rally on a

strong jobs report, which supports the case for a rate hike this year. In an early afternoon speech,

New York Fed President William Dudley said the second quarter rebound is relatively muted but

that a Federal Reserve interest rate hike seems appropriate later this year. He added that market

turbulence is likely once a rate hike begins. Traders also eyed new headlines out of Greece.

After the local market close, Greece Prime Minister Alexis Tsipras said Greece offered a realistic

proposal that is in line with creditors' needs. He added that the country needs a deal that puts an

end to "Grexit" talk and that doesn't combine austerity with debt relief. European stocks closed

lower after the strong U.S. jobs report. Investors also weighed continued concerns about Greece,

which delayed a debt payment to the IMF originally due Friday. The ATHEX Composite fell

nearly 5%. Earlier, optimism about U.S. economic growth mostly outweighed concerns about

tightening as stocks attempted gains after opening in the red. The Nasdaq outperformed, while

the Dow Jones industrial average and S&P 500 struggled to stay in positive territory. The Dow

Jones Industrial Average traded down 30 points, or 0.17%, at 17,876. The S&P 500 traded down

half a point, or 0.03%, at 2,095, with telecommunications leading seven sectors lower and energy

leading advancers.

The Nasdaq traded up 4 points, or 0.09%, at 5,063. Gold is trading about 0.6% lower, crude oil is

seen trading about 0.3% higher, and the U.S. dollar is seen trading about 0.9% higer at

about 1:00pm Chicago time.Thursday, there were 444 contracts traded, down from 707 contracts

traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday

decreased by 54 contracts to 11,901.

India 2015-16 Main Paddy Rice Sowing

Continues to Pick Up Amid El Nino Fears

Jun 05, 2015




Planting for India 2015-16 Kharif (main) rice crop (June - December) which began on May 8,

2015 is picking up fast and stands at around 346,000 hectares as of June 5, 2015; up about 13%

from around 305,000 hectares planted during the same period last year, according to preliminary

data released by the Indian Agriculture Ministry.

Though the start has been slow due to untimely timely rains in some rice growing regions,

planting process has picked up quite fast according to data from the Agriculture Ministry. A

likely drought-inducing El Nino this year is expected to lower production prospects this year. In

its second forecast for 2015, the India Meteorological Department (IMD) has its estimate for this

year's monsoon rains to 88% of normal, from a previous estimate of 93% due to reports of a




strengthening El Nino. It is expecting rainfall to be 85% of the normal in the states of Haryana,

Punjab, Rajasthan and Uttar Pradesh.

The IMD expects the El Nino pattern to reach to moderate to a strong one during the monsoon

season. The government of India, in its third advance estimates for major crops, has estimated

India's rice production for 2014-15 marketing year (October 2014 - September 2015) at around

102.54 million tons, down about 4% from an estimated 106.65 million tons in 2013-14,

according to a statement from the agriculture Ministry.The total Kharif crop sown area stands at

6.127 million hectares as on June 5, 2015, down about 5% from around 6.475 million hectares

during the same period last year, according to the Agriculture Ministry.

Oryza Overnight Recap – Chicago Rough

Rice Futures Continue Upward Momentum

Despite Slip in Grain Prices Overnight

Jun 05, 2015

Chicago rough rice futures for Jul delivery are currently seen paused 6.5 cents per cwt (about $1

per ton) higher at $9.990 per cwt (about $220 per ton) ahead of floor trading in Chicago. The

other grains are seen trading lower; soybeans are currently seen trading about 0.2% lower, wheat

is listed about 0.6% lower and corn is currently noted about 0.6% lower.U.S. stock futures

traded lower on Friday following a far better-than-expected nonfarm payrolls report. Dow

futures traded about 50 points lower, slightly off from the 30-point level prior to the data release.

U.S. nonfarm payrolls totaled 280,000 in May with unemployment at 5.5%. Average hourly

earnings increased by 8 cents, beating expectations. The labor force participation rate gained to

62.9%.Analysts polled by Reuters forecast the U.S. economy created 225,000 new jobs last

month, compared with 223,000 in April. The unemployment rate was expected to stay

unchanged at 5.4%. Most economic data has showed modest economic growth. U.S. stocks

closed lower on Thursday as volatility in bond markets and a lack of resolution on Greece kept

investors on edge ahead ofFriday's jobs report. In Europe, share markets were broadly lower on

Friday after Greece delayed a debt payment to the IMF and caution prevailed ahead of the U.S.

jobs data. Gold is currently trading about 0.6% lower, crude oil is seen trading about 0.5%

lower, and the U.S. dollar is currently trading about 1.2% higher at 8:15am Chicago time




Thailand Plans to Revise Rice Field Rent Act

Jun 05, 2015

The government of Thailand is planning to revise the rice field rent Act (Agricultural Land Rent

Act B.E. 2524) to provide justice in land rent for land lords and tenants, according to local

sources.The Prime Minister reportedly instructed the Office of the Council of State, the Ministry

of Interior and the Ministry of Agriculture and Cooperatives to complete the revising of the Act

within three months. The Permanent Secretary for Agriculture and Cooperatives told local

sources that currently there are around 1.08 million households, which represents nearly 41% of

the total rice field tenants in the country, do not have formal legal contracts with their landlords.

Therefore the amended law will aim to ensure all the rice field tenants and landlords are included




in the system with proper legal documents, he said.The new law is also expected to prohibit an

annual rent of agricultural land and require landlords to first right to buy their properties to

tenants if they want to sell them. The proposal is understood to be part of the military

government's efforts to raise income and standard of living of the rice farmers in the country.

Vietnam Wins Philippines Rice Import

Tender; To Supply 150,000 Tons of Rice at

$410.12 per Ton

Jun 05, 2015

Vietnam has won the Philippines rice import tender today

to supply 150,000 tons of rice at $410.12 per ton,

according to Reuters.The Philippines National Food

Authority (NFA) invited tenders from Vietnam

and Thailand to supply 250,000 ton of 25% broken long-

grain white rice for delivery between July and August, to

replenish stocks during the lean season (July - September)

as well as prevent commercial rice price hikes. While,

Vietnam and Thailand both bid to supply 150,000 tons of

rice at $419.35 per ton and 100,000 tons of rice at $419 per respectively, the NFA rejected both

the bids as they were higher than its reference rate and allowed them to rebid.

Vietnam agreed to lower its bid to $410.12 in line with NFA's referenceprice, but Thailand

backed out since it felt the NFA's reference price was very low.Earlier this year, the Philippines

imported 300,000 tons of rice from Vietnam and 200,000 tons from Thailand. The NFA is

authorized to import another 350,000 tons of rice, including 100,000 tons not allocated in today's

tender and 250,000 tons in case the El Nino pattern intensifies impacting the harvest.

The Philippines can also import 805,000 tons of rice at 35% under the renewed WTO minimum

access volume (MAV), including 755,000 tons in the

country-specific- quota (CSQ) and 50,000 tons in the omnibus quota, in the third quarter.Last

year, the South-east Asian nation imported more than 1.8 million tons of rice (including 1.5




million tons of 2014 imports and 300,000 tons of 2013 residual imports) to replenish rice stocks

and control price hikes. The demand from the Philippines is expected to support continuously

falling rice export prices in Asia. Export prices of Thai 5% broken rice, Vietnam 5% broken rice

and India 5% broken rice currently stand at around $365 per ton, $355 per ton and $380 per ton

respectively compared to $410 per ton, $380 per ton and $390 per ton respectively at the

beginning of the year.

Thailand Plans to Sell Bulk of Stockpiled

Rice to Industrial Sector; Global Rice Prices

Expected to Surge

Jun 05, 2015




The government of Thailand is planning to sell a bulk of its stockpiled rice to animal feed and

ethanol producers as it is found unfit for human consumption, a move that could reduce global

rice stocks and push up rice prices, according to Bloomberg.The Deputy Prime Minister told

reporters that the authorities would decide in about a month on the disposal process of nearly 13

million tons of sub-standard rice stocks. He noted that they considering various options such as

selling the poor quality grains to animal feed and ethanol producers or sort the grains into

different grades and sell accordingly.

However, the Director-General of the Department of Foreign Trade (DG-DFT) noted that sell to

the industrial sector seems to be a better option as grading the rice is turning out to be quite

costly. According to a stock-audit report released earlier this year, only about 2.35 million tons

are of standard quality, about 14.4 million tons are of sub-standard quality, around 694,000 tons

of rice are rotten and the remaining 390,000 tons of rice are missing. The DG-DFT also

confirmed that only 2.6 million tons of rice are fir for human consumption.The decision is

expected to reduce the global rice stocks condsiderably amid the fears of an impending El Nino,

which is expected to reduce rice output in Asian countries, such as India, Philippines, Indonesia

and Thailand. Currently, Thailand's rice stocks are said to account for 37% of the global rice

trade. Analysts say the decision is sending some bullish signals in the global rice market and

prices may increase over $500 per ton, even crossing the highest prices reached in August 2013.

Export prices of Thai 5% broken rice, Vietnam 5% broken rice and India 5% broken rice

declined to around $365 per ton, $355 per ton and $380 per ton respectively from around $410

per ton, $380 per ton and $390 per ton at the beginning of the year. In the beginning of this year,

the Finance Permanent Secretary told local sources that losses from rice subsidy/pledging

schemes between 2004 and 2014 are estimated to cross the earlier estimations of around $682

billion baht (around $21 billion) if depreciation and missing rice stocks are also considered.




Pakistan Rice Sellers Increase Some of Their

Quotes; Other Asia Rice Quotes Unchanged

Today

Jun 05, 2015

Pakistan rice sellers increased their quotes for 5% broken rice by about $5 per ton to around

$395 - $405 per ton today. Other Asia rice sellers kept their quotes mostly unchanged.

5% Broken Rice

Thailand 5% rice is indicated at around $360 - $370 per ton, about a $10 per ton premium on

Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $375

- $385 per ton, about a $20 per ton discount to Pakistan 5% rice shown at around $395 - $405 per

ton, up about a $5 per ton from yesterday.

25% Broken Rice

Thailand 25% rice is shown at around $340 - $350 per ton, about a $10 per ton premium on

Vietnam 25% rice shown at around $330- $340 per ton. India 25% rice is indicated at around

$360 - $370, about $10 per ton premium on Pakistan 25% rice shown at around $350 - $360 per

ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice is

indicated at around $355 - $365 per ton, about a $55 per ton discount to Pakistan parboiled rice

shown at around $410 - $420 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, about a $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.

8th june 2015 daily exclusive oryza e rice newsletter by riceplus magazine

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