21st january,2015 daily exclusive oryza rice e newsletter by riceplus magazine

January 21, 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

Pakistan Rice Sellers Lower Some of Their Quotes; India Rice Sellers Increase Some of Their Quotes Jan 20, 2015

Pakistan rice sellers lowered their quotes for 5% broken rice and 25% broken rice by about $5 per ton each to around $360 - $370 per ton and around $320 - $330 per ton respectively. India rice sellers increased their quotes for parboiled rice by about $5 per ton to around $390 - $400 per ton. Thailand and Vietnam rice sellers kept their quotes mostly unchanged today.

5% Broken Rice Thailand 5% rice is quoted at around $405 - $415 per ton, about $30 per ton premium on Vietnam 5% rice shown at around $375 - $385 per ton. India 5% rice is quoted at around $395 -

Page 1 of 11

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

www.ricepluss.com $405 per ton, about $35 per ton premium on Pakistan 5% rice quoted at around $360 - $370 per ton, down about $5 per ton from yesterday.

25% Broken Rice Thailand 25% rice was last quoted at around $350 - $360 per ton, about $10 per ton premium on Vietnam 25% rice shown at around $340 - $350 per ton. 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, down about $5 per ton from yesterday.

Parboiled Rice Thailand parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice is quoted at around $390 - $400 per ton, up about $5 per ton from yesterday and 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, on par with Vietnam 100% broken rice shown at around $320 - $330 per ton. India's 100% broken rice is shown at around $300 - $310 per ton, about $10 per ton premium on Pakistan broken sortexed rice quoted at around $290 - $300 per ton.

Blockades Disrupt Rice Supply Chain, Drive Up Prices in Bangladesh Jan 20, 2015

Blockades of highways, railways and waterways have been disrupting supply of essential commodities to important wholesale markets in the country, according to local sources. The Opposition Leader had called for the blockades on January 5, 2015.Traders told local sources that the ongoing blockades have led to increase in prices significantly. According to them, Page 2 of 11

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

www.ricepluss.com wholesale prices of different varieties of rice increased between Tk 25 - Tk 100 per 50 kilogram (around $6.4 - $25.7 per ton) in markets across the country. Currently, coarse rice variety is selling at around Tk 36-37 per kilogram ($460 - $480 per ton), fine rice is selling at around Tk 48-52 per kilogram ($620 $670 per ton) and medium variety is selling at Tk 38-40 per kilogram (around $490 - $510 per ton).

Most of the rice millers have stopped operating their mills fearing disruptions from antigovernment activists. Transport prices have also increased significantly due to blockades, according to traders. They noted that truck charges have almost doubled during the last two weeks as truck owners are concerned of vandalism on highways. They are afraid that prolonged blockades would cause severe shortages of commodities in the country.Rice prices have increased about 7.3% since the beginning of this year despite a record production in 2014 due to the political turmoil, said Consumers Association of Bangladesh (CAB) Secretary.

China Imports 2.24 Million Tons of Rice in First Eleven Months of 2014, Down 1% from Last Year

Jan 20, 2015

Page 3 of 11

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

www.ricepluss.com

China has imported around 2.244 million tons of rice in the first eleven months of 2014 (January - November), down about 1% from around 2.267 million tons imported during the same period last year, according to data from China Customs General Administration.In November 2014, China imported around 230,000 tons of rice, up about 28% from around 180,000 tons imported in October 2014, and up about 25% from around 184,318 tons imported in November 2013.

China has exported around 345,369 tons of rice in January - November 2014, down about 39% from around 478,400 tons exported during the same period last year, according to data from the China Customs General Administration.In November 2014, China exported around 108,815 tons of rice, up about 89% from around 57,492 tons exported in October 2014 and over twice from around 50,700 tons exported in November 2013.China imported about 2.267 million tons of rice and exported about 478,400 tons of rice and in 2013.

China's Customs department has seized over 201,000 tons of smuggled rice worth about 1.26 billion Yuan (around $203 million) in 2014 under the project "Green Wind", according to Xinhua News Agency. The project was aimed at checking smuggling in grains, frozen meat products, sugar, cotton and cooking oil.USDA estimates China to produce around 144.5 million tons of rice, import around 4 million tons and export around 400,000 tons of rice in MY 2014-15 (July - June).

Oryza U.S. Rough Rice Recap - Unchanged Market as Prices Search for a Bottom Jan 20, 2015

The U.S. cash market was unchanged today and the big question everyone is asking is when will we eventually find a bottom.Since the beginning of the marketing year, cash prices at the farm gate have fallen roughly $3.00 per cwt and some believe that without fresh demand prices could continue to slide.The only demand some analysts see that could keep this market from falling further is the chance the U.S. is awarded some of the latest Iraqi Grain Board tender.

Japan Buys 61,000 Tons of Non-glutinous Rice in Tender Jan 20, 2015

Page 4 of 11

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

www.ricepluss.com Japan has purchased about 61,000 tons of non-glutinous milled rice from Thailand and the U.S., according to official sources.Japan bought 49,000 tons of non-glutinous milled (medium-grain) rice from the U.S.; and about 12,000 tons of non- glutinous milled (long-grain) rice from Thailand. A total of 45 bidders (29 for medium-grain U.S. rice and 16 for long-grain Thai rice) participated in bidding that took place on January 16, 2015. Average price of the imported rice is around JPY 96,223 per ton (around $812 per ton) excluding tax and around JPY 103,921 per ton (around $877 per ton) including tax.The results pertain to the tenth ordinary import tender issued

by Japan in 2014.

Cambodia MY 2014-15 Rice Exports Estimated to Increase 15% y/y to 1.15 Million Tons Jan 20, 2015

Page 5 of 11

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

www.ricepluss.com The UN's Food and Agriculture Organization (FAO) has estimated Cambodia's MY 2014-15 (January 2015 - December 2015) rice exports (including official and unofficial exports to Thailand and Vietnam) to increase about 15% to around 1.15 million tons from an estimated 1 million tons in MY 2013-14. The FAO forecasts exports of all cereals, including rice, to increase about 9% to around 1.5 million tons from around 1.376 million tons in MY 2013-14.

The UN agency estimates Cambodia's total paddy rice production in 2014-15 at around 9.3 million tons (around 5.76 million tons, basis milled) , down 1% from around 9.39 million tons (around 6 million tons, basis milled) produced in 2013. Harvesting of the 2014-15 wet season crop (June - February), which accounts for 80% of Cambodia's total paddy rice production, is underway and is expected to be complete by the end of February 2015. The FAO estimates output from the 2014 main season rice crop to decline 2% y/y to around 7.2 million tons due to dry weather conditions in north-western parts of the country between June and August. Also localized floods in August in the Mekong River Basin has affected around 166,000 hectares of agricultural lands, including paddy. It however estimates output from the 2014-15 dry season crop (November - April) to be normal.

Average wholesale prices declined in December 2014 after being stable at around 1.6 million Riel (around $400) per ton since April this year.USDA estimates Cambodia MY 2014-15 (January 2015 - December 2015) paddy rice production at around 7.656 million tons (around 4.9 million tons, milled basis), up about 4% from around 7.383 million tons (around 4.725 million tons, milled basis) in MY 2013-14. It estimates Cambodia to export around 1.2 million tons of rice in 2015, down about 20% from an estimated 1 million tons in 2014.

Myanmar to Begin Official Rice Exports to China from April 2015 Jan 20, 2015

Myanmar rice exporters will begin exporting rice to China legally from April 2015 after a trade agreement is finalized between the two countries by the end of February this year, local sources quoted the General Secretary of the Myanmar Rice Federation (MRF) as saying at a press briefing in Yangon.Nine companies, including the Myanmar Agribusiness Public Corporation Limited (MAPCO), have been selected to export rice to China. A MRF spokesperson told local sources that Page 6 of 11

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

www.ricepluss.com eventually other small- and medium-sized suppliers will also be allowed to export rice to China.

Sources at the MRF noted that a networking seminar for Chinese and Myanmar rice traders would be held on March 6, 2015 in Yangon.

In the mean time, China Certification & Inspection Group (CCIC) will open offices in Yangon, Mandalay and Muse to monitor the quality of Myanmar rice before exporting to China.Myanmar has been keen on finalizing a rice trade agreement with China as well as legalizing rice exports through borders. The Chinese authorities banned rice imports from Myanmar borders in August 2014 leading to price falls in the country. But, the Chinese Premier reportedly promised that China will import around 1 million tons of rice from Myanmar in 2015 at about $400 per ton as well as legalize rice imports through northern borders of Myanmar on the sidelines of the 25th ASEAN Summit in November 2014.

Following this development, delegations from the MRF, the Rice Millers' Association, Myanmar Rice & Paddy Traders Association, the Agriculture and Irrigation Ministry and the Commerce Ministry had visited China early this month and finalized Memorandum of Agreements (MoU)s with companies that agreed to buy rice from Myanmar. Last week, a delegation of 10 exporting companies along with related documents also visited China to attend a meeting with the officials of the CCIC, COFCO Group and the companies that signed MoUs with the MRF. They reportedly discussed matters related to standards for rice exports.China has been an important export market for Myanmar rice for the last couple of years. Myanmar's rice exports to China (mostly through northern borders) increased almost 125 times since 2011, according to a report by the World Bank in June this year. Myanmar's illegal rice exports to China reached about 800,000 tons in the first nine months of FY 2014-15, according to local sources. The South-East Asian nation expects to export over 1.5 million tons of rice in FY 2014-15, up about 25% from around 1.2 million tons exported in FY 2013-14. USDA estimates Myanmar to produce 18.98 million tons of paddy rice (around 12.15 million tons, milled basis) and export around 1.4 million tons of rice in MY 2014-15 (January - December 2015).

Global Rice Quotes January 20th, 2015 Long grain white rice - high quality Thailand 100% B grade 415-425 Vietnam 5% broken 375-385 India 5% broken 395-405 Pakistan 5% broken 360-370 Cambodia 5% broken 440-450 U.S. 4% broken 510-520 Uruguay 5% broken NQ ↔ Argentina 5% broken NQ ↔

↔ ↔ ↔ ↓ ↔ ↔

Page 7 of 11

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

www.ricepluss.com Long grain white rice - low quality Thailand 25% broken NQ ↔ Vietnam 25% broken 340-350 ↔ Pakistan 25% broken 320-330 ↓ Cambodia 25% broken 430-440 ↔ India 25% broken 360-370 ↔ U.S. 15% broken 495-505 ↔ Long grain parboiled rice Thailand parboiled 100% stxd 405-415 ↔ Pakistan parboiled 5% broken stxd 400-410 India parboiled 5% broken stxd 390-400 ↑ U.S. parboiled 4% broken 580-590 ↔ Brazil parboiled 5% broken 570-580 ↔ Uruguay parboiled 5% broken NQ ↔ Long grain fragrant rice Thailand Hommali 92% 920-930 ↔ Vietnam Jasmine 505-515 ↔ India basmati 2% broken NQ ↔ Pakistan basmati 2% broken NQ ↔ Cambodia Phka Mails 805-815 ↔ Brokens Thailand A1 Super 320-330 ↔ Vietnam 100% broken 320-330 ↔ Pakistan 100% broken stxd 290-300 ↔ Cambodia A1 Super 355-365 ↔ India 100% broken stxd 300-310 ↔ Egypt medium grain brokens NQ ↔ U.S. pet food 405-415 ↔ Brazil half grain NQ ↔

↔

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

Russian Rice Sector Seeks Higher Yields; Rice Acreage Far from Reaching the Maximum Land Available Jan 20, 2015

The Russian rice growing sector has a tradition of seeking high-yielding varieties: the AllRussian Rice Research Center (ARRRI) of Krasnodar was established in 1931, and ever since has been busy in breeding varieties with high yield and agronomic traits adapted for various climatic zones, but also developing of resource-saving and environmental-safe technologies for rice growing, and seed farming.Professor Grigoriv Leonidovich Zelensky, teaching in Kuban Page 8 of 11

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

www.ricepluss.com State Agrarian University of Krasnodar, says, in the introduction of “Rice Blast Control with Release of Resistant Varieties”, that “For the population of Russia rice grain is a valuable food, dietary and wholesome product.” He adds that the main rice-growing area in the country is Krasnodar area, where more than 80% of Russian rice is farmed.

The average yield has continually grown over the last decade. In 2012, a record a paddy yield of 7.11 tons per hectare was attained, farmed on 133,000 hectares.In general, total area that could be used to grow rice is more than 500,000 hectares, but it can vary from 140,000 to 200,000 hectares per year.Researcher Evgeny Kharitonov, of ARRRI, in his work “Problems of Growing Rice in Russia and Ways to Solve Them” notes that Russia’s rice growing area is one of the most Northern in the world. In Krasnodar breeding work started in 1932, during Soviet Union period: the rice gene pool includes 6,400 samples to work with; among them 97.6% are Japonica subspecies. The ancestors of modern Russian varieties are Kendzo, from Japan, k-514, from China, Balilla, from Italy, and Saturn from the U.S.Now the breeders are working on finding salinity resistant varieties, including the variety Kurchanka, which is replacing Spalchik thanks to better yields, particularly in salty soils.

Thailand to Sell One Million Tons of Rice in Tender Jan 20, 2015

Thailand government is planning to sell around one million tons of rice in a tender on January 29, 2015, Reuters quoted sources at the Thai Commerce Ministry as saying.The government is planning to auction around 850,000 tons of 5% broken rice and around 150,000 tons of jasmine rice on January 29.Currently, export prices of Thai 5% broken rice are quoted at around $410 per ton and those of Thai Hom Mali rice are quoted at around $925 per ton. Abundant supplies from Thailand as well as from harvests of other rice exporting countries have pushed down global rice export prices with Vietnam's prices being lowest in the last ten months.

Last week, the Thai Commerce Ministry stated its plans to sell around 10 million tons of stockpiled rice in 2015 and around 7 million tons in 2016 through tenders. Thailand sold around 681,740 tons of rice in four tenders last year after the military government took over on May 22, Page 9 of 11

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

www.ricepluss.com 2014; and the government has struck government-to-government deals for about 570,000 tons last year, she said. The Thai government currently holds around 17.8 million tons of rice in its stockpiles.

According to the stock audit report released by the government, of the 17.8 million tons of rice stocks, of which 2.35 million tons are of good quality, 14.4 million tons are sub-standard, around 694,000 tons are rotten and around 390,000 are missing. The former Prime Minister is facing impeachment hearing for her role in the management and implementation of the controversial rice pledging scheme.Thailand exported around 10.8 million tons of rice in 2014, up about 64% from around 6.6 million tons in 2013. Thailand is due to sign an agreement with Hong Kong to export around 100,000 tons of rice in 2015.

VFA Plans to Procure Entire Paddy Rice Output in 2015 to Shield Farmers from Gloomy Export Prospects Jan 20, 2015

The Vietnam Food Association (VFA) is planning to procure entire paddy rice output from farmers to protect them from likely price falls due to weakening export demand, according to local sources.Vietnamese rice exporters are reportedly concerned of lower exports this year due to stiff competition this year from Thailand, India and Pakistan. While Thailand is expected to offload more stocks from its warehouses into the market, India and Pakistan have already reduced prices of low and medium quality rice varieties to compete with Vietnam.

Last week, Vietnam had lowered the floor prices of high quality 5% rice, medium quality 10% and 15% rice and lower quality 25% rice to $385 per ton, $375 per ton, $365 per ton and $360 per ton respectively to meet the Philippine demand for 187,000 tons of rice, which is to be delivered by February 28, 2015. The Ministry of Industry and Trade (MOIT) noted that the rice exporters need to find new markets for Vietnamese rice in order to sustain competition.Vietnamese rice sector is said to be plagued by financial difficulties, poor cultivation planning and outdated technology.

Experts have been urging the government to increase production of higher quality rice and focus on attracting high-end markets in order to increase competitiveness of the Vietnamese rice as well raise farmers and exporters' incomes.Currently export prices of India 5%, Pakistan 5% and Thai 5% rice stand at around $400 per ton, $370 per ton and $410 per ton respectively compared Page 10 of 11

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

www.ricepluss.com to around $380 of $Vietnam 5% rice. Vietnam exported around 6.316 million tons of rice in 2014, down about 6% from about 6.71 million tons of rice exported in 2013 and down about an average of about 7 million tons during 2010-13, according to data from the VFA.

Thai NACC to Charge Former Commerce Minister in G2G Rice Deal with China Jan 20, 2015

Declaring results of the investigation related to government-togovernment (G2G) rice deals with China, Thailand's National Anti Corruption Commission (NACC) stated that it will charge former Commerce Minister, the former Deputy Commerce Minister as well as 20 state officials and employees of private firms for alleged corruption in rice export deals with two Chinese firms, according to Reuters.The NACC told reporters that both the Ministers are accused of falsifying G2G rice deals for about 1.2 million tons between Thailand and China in 2013. The agency noted that the deal never happened and the rice was sold locally. It stated that the rice was sold to two China-based companies, who in turn sold it to a Thai private company. The NACC said the two companies were not acting on behalf of the China government.A NACC member noted that since the specified deal caused huge losses to the government, the case would be forwarded to the Supreme Court's Criminal Division for Political Office Holders.

The former Prime Minister is facing charges of ignoring warnings against misdealing in the controversial rice pledging scheme, which brought losses of over 500 billion baht (around $15.6 billion) to the exchequer. The National Legislative Members will vote on January 23, 2014 whether she was guilty of dereliction of duty. The vote requires a three-fifths majority to pass a judgement.

Meanwhile, four senior members of the former PM's Cabinet defended her on social media after the NLA rejected their responses on behalf of the former PM on January 16, 2014. The exPremier reportedly escaped attending the second impeachment hearing and sent her representatives to answer the NLA. The NLA members posed some questions for the former PM.The four members posted the clippings of the NLA hearing on YouTube and sent out a statement answering some questions on behalf of the ex-Premier. They reiterated that the rice pledging scheme was good for the farmers.However, a NLA member told media reporters that the statements would not influence the vote on this Friday.

Page 11 of 11

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