Daily Exclusive ORYZA Rice E-Newsletter

January 29,2016
Vol 6,Issue I

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www.riceplusmagazine.blogspot.com

Daily Exclusive ORYZA Rice E-Newsletter

Indonesia Hopes to Control Price Hikes with

Sufficient Supplies
Jan 28, 2016

The government of Indonesia is planning to prioritize achieving a supply-demand balance to

control rice and food price hikes, Tempo.Co quoted the Trade Minister as saying.
"The ups and downs in prices are market signals. We do not wish to be inflexible as we try to
control prices but would rather decide on the best course of action to restrain prices from rising,"
he said. "If the prices were too high, some sort of incentive or market operation could be carried
out, and if prices are too low, more stocks would be bought," he added.
He noted that in order to exercise this activity, the government needs to check and enhance the
capacity of warehouses. He assured that the government was already in the process of building
more warehouses.
The Minister stated that a mechanism to set the floor and ceiling prices for various commodities,
including rice, would be proposed at a coordination meeting involving all the concerned officers
and Ministers.

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According to the Staples Market Monitoring System of the Trade Ministry, the average retail
price of the medium-quality rice increased to Rp 10,904.55 per kilogram (around $787 per ton)
this week from around 10,748.14 per kilogram (around $776 per ton) in December last week.
The Ministry stated that prices increased despite an increase of supply.
Based on the data of staples price development of the Ministry, rice supply at the Cipinang Rice
Market increased about 17.61% y/y as of January 18, 2016.
The President reportedly held a meeting with the Chief Economic Minister, Agriculture Minister,
Trade Minister and other concerned Ministers, to discuss the issue of increase in food prices over
the past few weeks.

Bangladesh Plans to Build Five

Steel Silos to Store 345,000 Tons
of Rice; May Invite Bids in August
2015
Jan 28, 2016

The government of Bangladesh is planning to build five steel silos with total capacity to store
about 345,000 tons of rice, Bloomberg quoted a news release by the Directorate General of Food.
It is proposing to build rice silos of 48,000 tons capacity each in Dhaka, Narayangani,
Madhupur, Mymensingh and a silo of 105,000 tons capacity in Ashuganj.

Barisal,

The government is also proposing to build two wheat silos of 190,500 tons capacity in
Chittagong (114,300 tons) and Maheshwaspasha (76,200 tons).
The Bangladesh government is planning to invite bids from interested companies in August.
Meanwhile, it has asked interested companies to submit application by March 14, 2016 for prequalification purposes. Companies can apply for pre-qualification of one or more contracts.

India 2015-16 Winter Crop Rice Planting So

Far Lags Behind Last Year
Jan 28, 2016

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India 2015-16 winter/rabi rice (November - May) planting area has reached around 2.241 million
hectares as of January 28, 2016, down about 7% from around 2.408 million hectares planted
during the same period in 2014-15, according to a press release by the Ministry of Agriculture.
The decline is reportedly due to scanty rains and low moisture in some of the rice growing
regions. However, this year's planting is ahead of the previous 4-year average of about 2.0195
million hectares.
The total rabi planting of all crops stood at around 59.15 million hectares as on January 28, 2015,
down about 3% from last year's 60.93 million hectares.
In 2014-15, the rabi rice acreage reached around 4 million hectares, down about 9% from around
4.488 million hectares in 2013-14.

Malaysia to Distribute 20 Kilograms of Rice

per Month to Families in Need Under New
Aid Program
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Daily Exclusive ORYZA Rice E-Newsletter

The Malaysian Prime Minister has announced that the government has decided to distribute 20
kilograms of rice per month to families registered with the governments welfare database under
the new aid scheme, according to local sources.
The government reported introduced MyBeras program as one of the recalibration measures in
the 2016 Budget. The program will being from March 1, 2016, and will last until December 31,
2016. Around 200,000 people are expected to benefit from the program.
The Prime Minister noted that the program was aimed to reduce the burden of financially weaker
families amid the increasing living costs. The Agriculture and Agro-based Industry Minister
added the Ministry would work with the relevant agencies, including Village Development and
Security Committees (JKKKs), to identify individuals who deserved the aid. "The government
would strive to provide the best quality rice to the recipients through the programme," he said.
MyBeras program will reportedly be implements besides the 1Malaysia People's Aid (BR1M)
program.

EU Rice Imports Increase Sharply in

September 1, 2015 - January 19, 2016
Jan 28, 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,
2016).
The EU imported about 441,465 tons of rice during the period September 1, 2015 - January 19,
2016, up about 28% from around 345,163 tons imported during the same period last year.
Japonica rice imports increased about 8% to around 32,114 tons in September 1, 2015 - January
19, 2015 period from around 29,619 tons during the same period last year. Indica rice imports
increased about 30% to around 409,351 tons during the said period from around 315,544 tons
last year.
The UK remained the largest importer in September 1, 2015 - January 19, 2016 period with
around 105,407 tons followed by France (78,689 tons), The Netherlands (49,535 tons), Germany
(33,480 tons), Poland (31,047 tons) and Italy (30,404 tons). Other EU countries imported
112,903 tons.
During the week ended January 19, 2015, the EU imported around 21,941 tons of rice, down
about 17% from around 26,514 tons imported during the week ended January 12, 2015.

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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.

Philippines Must Focus on Achieving Rice

Self-Sufficiency as El Nino Impact Lesser
than Expected, Says Official
Jan 28, 2016

The government of the Philippines must focus on achieving rice self-sufficiency as the El Nino
impact on rice production has been lesser than expected, Bloomberg quoted the Economic
Planning Secretary.
Speaking at a media briefing in Manila following the release of the GDP data, he noted that
though the government estimated that the El Nino would get worse during November and
December 2015, the forecast didn't turn out to be true in many provinces.
He also noted that the government is still monitoring the impact of El Nino on rice production
and supplies.

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Yesterday, the National Food Authority (NFA) Administrator said that the government has decided to
stop rice imports for the lean season due to adequate stocks. However, there is reportedly no
information on rice imports under the minimum access volume (MAV).

Oryza U.S. Rough Rice Recap - Higher

Prices Seen as U.S. and China Agree to
Phytosanitary Protocol
Jan 29, 2016

The U.S. cash market was slightly firmer today although the trade was mostly quiet as buyers
and sellers could not come together on price.
This weeks firming of prices has been partially fueled by news that the U.S. and China have
come to an agreement regarding a phytosanitary protocol that would allow the U.S to export rice
to China, the worlds largest importer.
Analysts note that although the agreement has not yet been formally signed, once the first sale to
China is confirmed, it will likely change the sentiment of the market for the foreseeable future.

Global Rice Quotes

January 28th, 2016
Long grain white rice - high quality
Thailand 100% B grade 375-385
Vietnam 5% broken
350-360
India 5% broken
355-365
Pakistan 5% broken
340-350
Myanmar 5% broken 415-425
Cambodia 5% broken 425-435
U.S. 4% broken
465-475
Uruguay 5% broken
465-475
Argentina 5% broken 460-470

Long grain white rice - low quality

Thailand 25% broken 350-360
Vietnam 25% broken 340-350
Pakistan 25% broken 305-315
Cambodia 25% broken 405-415
India 25% broken
325-335
U.S. 15% broken
445-455

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Long grain parboiled rice
Thailand parboiled 100% stxd 370-380

Pakistan parboiled 5% broken stxd

405-415
India parboiled 5% broken stxd 345-355

U.S. parboiled 4% broken

500-510

Brazil parboiled 5% broken

520-530

Uruguay parboiled 5% broken NQ

Long grain fragrant rice

Thailand Hommali 92%
685-695
Vietnam Jasmine
425-435

India basmati 2% broken

NQ

Pakistan basmati 2% broken

NQ

Cambodia Phka Mails 750-760

Brokens
Thailand A1 Super
320-330

Vietnam 100% broken 325-335

Pakistan 100% broken stxd

290-300
Cambodia A1 Super
345-355

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

Thailand Hopes to Regain Top Rice Exporter

Status from India in 2016
Jan 28, 2016

The President of the Thai Rice Exporters Association (TREA) expressed optimism that Thai rice
exports will increase this year after passing the lowest point for the last three years, according to
local sources.
Thai 2015 rice exports declined about 10.7% to around 9.8 million tons from around 10.97
million tons in 2014. The TREA reported that Thailand lost its top rice exporter status to India,
which exported about 10.23 million tons in 2015.
The TREA President attributed the fall in exports to a global economic slowdown. He also noted
that falling oil prices and extending drought conditions in many countries are expected to impact
rice trading this year also.
"Thailand's rice shipment this year will not increase. Although world rice production and
stockpiles will decrease from the drought impact and more trading, the falling oil price will hit
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Daily Exclusive ORYZA Rice E-Newsletter

the purchasing power of many rice-importing countries, mainly in Africa and the Middle East,"
he said. The official noted that rice prices are also unpredictable but may gradually increase by
10% on lower supplies.
He, however, noted that Thailand could again reclaim its top rice exporter status from India in
2016 as the South Asian nation expects to export only 8.5 million tons during the year. He also
noted that there are several positive signs for Thailand's rice exports this year, including the
depreciation of Thai baht, competitive Thai rice prices, and support from the government. "The
Commerce Ministry is also striving to expand the market for Thai rice while maintaining the
market share," he added.

Oryza CBOT Rough Rice Futures Recap Chicago Rough Rice Futures Add Slightly to
Gains but Close off of Session High as Recent
Rally Runs into Resistance
Jan 29, 2016

Chicago rough rice futures for Mar delivery settled 4.5 cents per cwt (about $1 per ton) higher at
$11.310 per cwt (about $249 per ton). The other grains finished the day lower; Soybeans closed
about 1.7% lower at $8.6775 per bushel; wheat finished about 0.9% lower at $4.7225 per bushel,
and corn finished the day about 1% lower at $3.6550 per bushel.
U.S. stocks tried for gains Thursday, amid declines in biotech stocks, as oil prices rose and
Facebook soared on a solid quarterly report. U.S. crude oil futures pared gains but still held
about 3.5% higher, near $33.50 a barrel in afternoon trade. WTI surged above $34.50 to their
highest since Jan. 6. Brent traded just above $34 a barrel in afternoon trade after earlier topping
$35.50 a barrel on speculation that major producers may cooperate to cut production.
Russian Energy Minister Alexander Novak said Thursday that Saudi Arabia had proposed to cut
oil production by up to 5% by each country in order to support weak oil prices, Reuters reported.
But Saudi Arabia has not proposed cutting back production or asked Russia to do the same, Dow
Jones reported, citing a senior Gulf OPEC delegate. In afternoon trade, the Dow Jones industrial
average gained 63 points, or 0.40%, to 16,011. The S&P 500 rose 9 points, or 0.46%, to 1,891,
with energy leading nine sectors higher and health care the only laggard. The Nasdaq composite
gained 30 points, or 0.66%, to 4,498. Gold is seen trading about 0.1% lower, crude oil is seen
trading about 2.3% higher, and the U.S. dollar is seen trading about 0.4% lower at about 1:45pm
Chicago time.
Wednesday, there were 429 contracts traded, down from 467 contracts traded on Tuesday.
Open interest the number of contracts outstanding on Wednesday increased by 158 contracts to
13,381.
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Daily Exclusive ORYZA Rice E-Newsletter

Vietnam Rice Sellers Increase Some of Their

Quotes Today; Other Asia Rice Quotes
Unchanged
Jan 28, 2016

Vietnam rice sellers increased their quotes for 25% broken rice and 100% broken rice by about
$5 per ton each to around $340-$350 per ton and $325-$335 per ton respectively today. Asia
rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is indicated at around $365 - $375 per ton, about $15 per ton premium on
Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $355
- $365 per ton, about $15 per ton premium on Pakistan 5% rice shown at around $340 - $350 per
ton.
25% Broken Rice
Thailand 25% rice is indicated at around $350 - $360 per ton, about $10 per ton premium o
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 $370 - $380 per ton. India parboiled rice is
indicated at around $345 - $355 per ton, about $60 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 $320 - $330 per ton, on par with Vietnam
100% broken rice shown at around $320 - $330 per ton. India's 100% broken rice is shown at
around $260 - $270 per ton, about $30 per ton discount to Pakistan broken sortexed rice shown at
around $290 - $300 per ton.

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

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