29th january,2015 daily exclusive oryza rice e newsletter by riceplus magazine

January 29, 2015 Volume 5, Issue I

Daily Exclusive ORYZA

Rice

www.ricepluss.com E-Newsletter

Chief Editor:Hamlik For Advertisement & Specs:

Mujahid Ali mujahid.riceplus@gmail.com

Cell: +92 321 36 92874

Compiled & Edited by

Riceplus Magazine www.ricepluss.com

Asia Rice Quotes Mixed Today Jan 28, 2015

Thailand rice sellers increased their quotes for Hommali rice by about $5 per ton to around $925 - $935 per ton today. Vietnam rice sellers lowered their quotes for 25% broken rice and 100% broken rice by about $5 per ton each to around $330 - $340 per ton and around $305 - $315 per ton respectively and increased their quotes for Jasmine rice by about $5 per ton to around $475 $485 per ton. Pakistan rice sellers lowered their quotes for 5% broken rice by about $5 per ton to around $3 55 - $365 per ton. India rice quotes mostly unchanged today.

5% Broken Rice Thailand 5% rice is quoted at around $405 - $415 per ton, about $45 per ton premium on Vietnam 5% rice shown at around $360 - $370 per ton. India 5% rice is quoted at around $395 Page 1 of 9

Daily Exclusive ORYZA E-Newsletter Compiled & Edited by Riceplus Magazine

www.ricepluss.com $405 per ton, about $40 per ton premium on Pakistan 5% rice quoted at around $355 - $365 per ton, down about $5 per ton from yesterday.

25% Broken Rice Thailand 25% rice is quoted at around $365 - $375 per ton, about $35 per ton premium on Vietnam 25% rice shown at around $330- $340 per ton, down about $5 per ton from yesterday.

India 25% rice is quoted at around $360 - $370, about $40 per ton premium on Pakistan 25% rice quoted at around $320 - $330 per ton.

Parboiled Rice Thailand parboiled rice is quoted at around $410 - $420 per ton. India parboiled rice is quoted at around $390 - $400 per ton, about $10 per ton discount to Pakistan parboiled rice quoted at around $400 - $410 per ton.

100% Broken Rice Thailand broken rice, A1 Super, is quoted at around $320 - $330 per ton, about $15 per ton premium on Vietnam 100% broken rice shown at around $305 - $315 per ton, down about $5 per ton from yesterday. India's 100% broken rice is shown at around $295 - $305 per ton, about $5 per ton premium on Pakistan broken sortexed rice quoted at around $290 - $300 per ton.

Global Rice Quotes January 29th, 2015

Long grain white rice - high quality Thailand 100% B grade 415-425

↔

Vietnam 5% broken

360-370

↔

India 5% broken

395-405

↔

Pakistan 5% broken

355-365

↔

Myanmar 5% broken

410-420

↔ Page 2 of 9

Daily Exclusive ORYZA E-Newsletter Compiled & Edited by Riceplus Magazine

www.ricepluss.com Cambodia 5% broken

440-450

↔

U.S. 4% broken

495-505

↔

Uruguay 5% broken

NQ

↔

Argentina 5% broken

NQ

↔

Long grain white rice - low quality Thailand 25% broken

365-375

↔

Vietnam 25% broken

330-340

↔

Pakistan 25% broken

320-330

↔

Cambodia 25% broken 420-430

↔

India 25% broken

360-370

↔

U.S. 15% broken

485-495

↔

Long grain parboiled rice Thailand parboiled 100% stxd

410-420

Pakistan parboiled 5% broken stxd

↔

400-410

India parboiled 5% broken stxd 390-400

↔

U.S. parboiled 4% broken

550-560

↔

Brazil parboiled 5% broken

570-580

↔

Uruguay parboiled 5% broken NQ

↔

↔

Long grain fragrant rice Thailand Hommali 92% Vietnam Jasmine

925-935 475-485

↔

↔

India basmati 2% broken

NQ

↔

Pakistan basmati 2% broken

NQ

↔ Page 3 of 9

Daily Exclusive ORYZA E-Newsletter Compiled & Edited by Riceplus Magazine

www.ricepluss.com Cambodia Phka Mails 785-795

↓

Brokens 320-330

↔

Vietnam 100% broken 305-315

↔

Thailand A1 Super

Pakistan 100% broken stxd Cambodia A1 Super

290-300

350-360

↑

India 100% broken stxd

295-305

Egypt medium grain brokens

NQ

U.S. pet food

↔

405-415

Brazil half grain

NQ

↔

↔

↔

↔

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

India Government Has Adequate Rice Seeds for 2015 Kharif Season Jan 28, 2015

The Indian government has adequate agricultural seeds, including those of rice, for the 2015 kharif season (June December), according to a press release by the Ministry of Agriculture. Following a Zonal Conference of all the State Departments of Agriculture on 20-21 January 2015, the Ministry declared that all the states together have about 1.4 million tons of seeds as against the required 1.37 million tons.The Ministry would provide central assistance to all the states under "submission on seed and planting material" and requires them to send their Annual Action Plan for 2015-16 by mid-March.

Page 4 of 9

Daily Exclusive ORYZA E-Newsletter Compiled & Edited by Riceplus Magazine

www.ricepluss.com All the state governments were urged to use certified and quality seeds to increase the productivity of rice and other cereals. They are also encouraged to be aware of the farmers' rights and existing legislation to help them benefit from it.USDA estimates India's 2014-15 (October September) production at around 102 million tons, down about 4% from an estimated 106.54 million tons in 2013-14. It estimates India’s rice exports to decline about 16% y/y to around 8.7 million tons in MY 2014-15.

Oryza Overnight Recap - Chicago Rough Rice Futures Continue to Flirt with $11.000/cwt Mark Jan 28, 2015

Chicago rough rice futures for Mar delivery are currently listed 2.5 cents per cwt (about $1 per ton) higher at $10.990 per cwt (about $242 per ton) during early floor trading in Chicago. The other grains are all seen lower: soybeans are currently seen about 0.6% lower, wheat is listed about 1.8% lower and corn is currently noted about 0.9% lower.U.S. stocks climbed on Wednesday, a day after the S&P 500 took its biggest hit in more than three weeks, as upbeat earnings from companies including Apple boosted investor sentiment. On Wednesday afternoon, the Federal Reserve concludes its first two-day policy session of 2015, with the central bank expected to indicate that it remains on track to start raising interest rates later in the year.

The Dow Jones Industrial Average gained 43.70 points, or 0.2%, to 17,430.91. The S&P 500 added 8.58 points, or 0.4%, to 2,038.13, with technology the best performing sector and energy the worst of its 10 major industry groups. The Nasdaq rose 40.05 points, or 0.9%, to 4,721.66.

On Tuesday, U.S. stocks dropped sharply as corporations reported earnings that disappointed and orders for U.S. business equipment unexpectedly declined in December. Gold is currently trading about 0.5% lower, crude oil is seen trading about 2.3% lower, and the U.S. dollar is currently trading about 0.2% higher at 8:30am Chicago time.

Oryza Afternoon Recap - Chicago Rough Rice Futures Tumble as Grains Feel Pressure from Fresh Lows in Crude Prices Jan 28, 2015

Page 5 of 9

Daily Exclusive ORYZA E-Newsletter Compiled & Edited by Riceplus Magazine

www.ricepluss.com Chicago rough rice futures for Mar delivery settled 23.5 cents per cwt (about $5 per ton) lower at $10.735 per cwt (about $237 per ton). Rough rice futures charted another leg lower as prices collapsed during afternoon trading. The market has fallen to a fresh contract low as the buyers who were noted yesterday were absent and the bears once again gained control of price direction.

Today’s move has confirmed the bearish signal noted yesterday as the market was unable to maintain its placement above $11.000 per cwt (about $242 per ton), and adds further bearishness to the forecast for coming sessions.

Trade participants are now calling for prices to test $10.500 per cwt (about $231 per ton) before long, with many not eager to begin buying above the low $10.000 per cwt (about $220 per ton) area. The other grains finished the day sharply lower; Soybeans closed about 0.4% lower at $9.7025 per bushel; wheat finished about 2.7% lower at $5.0525 per bushel, and corn finished the day about 2.1% lower at $3.7325 per bushel.U.S. stocks declined on Wednesday afternoon, a day after the S&P 500 took its biggest hit in more than three weeks, as investors considered a patient Federal Reserve and oil's fall overrode upbeat earnings from Apple.

The Federal Open Market Committee stuck to its vow to be "patient" on hiking interest rates and raised its view of the economy and labor market, even as the central bank said it anticipates inflation to fall further in the near term. On Wednesday afternoon, the Federal Reserve concludes its first two-day policy session of 2015, saying the timing of rate hikes depends on economic data. After rising 97 points and falling 84, the Dow Jones Industrial Average was lately off 62.95 points, or 0.4%, to 17,319.26. The S&P 500 fell 10.94 points, or 0.6%, to 2,016.61, with technology the best performing and energy the worst of its 10 major industry groups.

The Nasdaq also wavered, lately down 12.71 points, or 0.3%, at 4,668.79. Gold is trading about 0.5% lower, crude oil is seen trading about 4.1% lower, and the U.S. dollar is seen trading about 0.7% higher at about 1:00pm Chicago time.Tuesday, there were 412 contracts traded, down from 555 contracts traded on Monday. Open interest – the number of contracts outstanding – on Tuesday decreased by 22 contracts to 9,048.

Oryza U.S. Rough Rice Recap - Cash Values Dip ahead of IGB Tender Announcement Jan 28, 2015

The U.S. cash market was materially weaker today falling in tandem with the futures market ahead of the Iraqi Grain Board tender results expected tomorrow.Analysts note that the sell-off in the futures market could be a signal that some market participants believe that Iraq with either Page 6 of 9

Daily Exclusive ORYZA E-Newsletter Compiled & Edited by Riceplus Magazine

www.ricepluss.com pass on U.S. origin or cancel the tender all together.At the current cash values farmers are not enthusiastic sellers however many are finding it difficult to get bids as buy interest remains very limited, especially for export.

Nigerian Naira Depreciation Linked to Increasing Rice Imports, Claims Central Bank Governor Jan 28, 2015

Increasing imports of several products, including rice, are putting a downward pressure on the country's currency, local sources quoted the Governor of the Central Bank of Nigeria (CBN) as saying.Speaking in a meeting with the private sector, the Governor noted that the bank has decided not to provide foreign exchange to support for the importation of rice and other commodities, which can be grown in Nigeria locally. He reiterated the need for cutting down imports to reduce downward pressure on the Naira, which has depreciate by about 8% to around N167.5/USD from around N155.2/USD during the last one year, according to data from the CBN. The CBN Governor also stressed to reduce imports of items such as consumables that are not really necessary for the nation. He urged the Nigerians to strengthen manufacturing sector for meeting the local demand as well as for exports.He however, assured that the $10 billion reserves with the CBN will presently help save the currency from devaluation. The reserves have also helped the nation survive the oil price crash, he added. The recent decline in oil prices is posing problems to Nigeria as it mostly relies on the foreign exchange income earned from oil exports to finance its imports of essential commodities such as rice.

Nigeria is a net importer of rice and imports over 50% of its annual rice consumption needs.

USDA estimates the country to produce 2.55 million tons of milled rice in the MY 2014-15 (October 2014 - September 2014) and import about 3.5 million tons. The country's consumption needs during the year are estimated at around 6.1 million tons.

Page 7 of 9

Daily Exclusive ORYZA E-Newsletter Compiled & Edited by Riceplus Magazine

www.ricepluss.com

Philippines Buffer Stocks Fall Below Requisite Norm Jan 28, 2015

Buffer stocks with the Philippines National Food Authority (NFA) are enough for 12-13 days, below the required norm of 15 day-stock, Bloomberg quoted the Food Secretary as saying.The NFA is likely to decide on the volume and schedule of imports next week, according to the NFA Administrator. He told local sources in December 2014 that the NFA is still authorized to import 500,000 tons of rice. It is likely that the NFA would exercise its authority and import 500,000 tons this year to serve as buffer stock during the lean season (June - August). Yesterday, a source from the NFA hinted that the government may import rice under Government-to-Government (G2G) deals.

The NFA 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) in 2014 to replenish rice stocks and control price hikes. Of these, 187,000 tons were allowed to be imported by private traders at 35% duty under the government's Minimum Access Volume (MAV) - Omnibus Rice Importation programme.The Philippines Statistics Authority (PSA) estimates the country's paddy rice output in the first six months (January - July) at around 8.55 million tons, up about 2.02% from around 8.38 million tons produced during the same period in 2014. It is estimating the Philippines' paddy rice output in the first three months (January - March) of 2015 at around 4.59 million tons, up about 6.62% from around 4.31 million tons during the same period last year.

USDA estimates the Philippines to import around 1.6 million tons of milled rice in 2015, up about 10% from an estimated 1.45 million tons in 2014. USDA estimates the South-East Asian nation to produce around 19.36 million tons of paddy (around 12.2 million tons, basis milled) in MY 2014-15 (July - June), up about 3% from an estimated 18.82 million tons (around 11.86 million tons, basis milled) in MY 2013-14.

Political Turmoil Hinders Libyan Rice Import Tenders Jan 28, 2015

Page 8 of 9

Daily Exclusive ORYZA E-Newsletter Compiled & Edited by Riceplus Magazine

www.ricepluss.com Ongoing political turmoil and consecutive payment problems are said to hinder rice purchases by a Libyan state grain buying agency through tenders, according to Reuters.The agency reportedly tendered to buy about 25,000 tons of 5% broken rice packaged in 25 kilogram bags and 50,000 tons of milling wheat on January 14, 2015. However, due to payment problems, the agency could not make any purchases so far, European traders were quoted as saying.It is understood to have made payment to a trader through a bank in the neighboring country Tunisia, but since it did not work out, it is again trying to make the payment through a local bank.Trials by two governments trying to seek control of Libya four years after the toppling of the former leader Muammar Gaddafi are severely affecting commercial activities in the country, according to local sources.Libya does not produce rice and imports all the rice needed for domestic consumption.

USDA estimates Libya to import around 310,000 tons of rice in 2015, up about 3% from around 300,000 tons imported in 2014.

Sierra Leone 2015 Rice Imports Estimated at 215,000 Tons; Slightly Up from 2014 Jan 28, 2015

The UN's Food and Agriculture Organization (FAO) has estimated Sierra Leone's 2015 milled rice imports at around 215,000 tons, slightly up from 2014. The expected increase in imports is attributed to shortfalls in 2014 production levels.Harvesting of the 2014 main rice crop was completed in December. The Ebola Virus Disease (EVD) outbreak began at the planting stage and continued till harvesting disrupting various farming activities and impacting the overall rice production in the country. The FAO estimates Sierra Leone's 2014 milled rice production at around 770,000 tons (around 1.155 million tons, basis paddy), down about 8% from around 831,600 tons (around 1.256 million tons, basis paddy) in 2013.

The government's measures to control the outbreak of EVD, including border closures, quarantine measures and other restrictions to control the spread of the virus, led to shortfalls in labour and agricultural inputs leading to a decline in production.According to the FAO, the significant impact of Ebola on export earnings of the country is likely to impact imports. Prices of imported rice remained stable during the last few months except in few localized areas reflecting low trading activity and high transport costs.USDA estimates Sierra Leone to produce around 693,000 tons of rice, basis milled, and import around 220,000 tons in MY 2014-15 (October - September) to meet consumption needs of around 913,000 ton.

Page 9 of 9

Daily Exclusive ORYZA E-Newsletter Compiled & Edited by Riceplus Magazine