4th february 2015 daily exclusive oryza rice enewsletter by riceplus magazine

4th February 2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine www.ricepluss.com Italy to Review Development of Rice Seed Sector Feb 03, 2015

Italy will review the development in the rice seed sector in a meeting on February 4, 2015, which will be attended by the Ente nazionale risi, the National Agency for Rice, the CRA-SCS (Council for Research and Testing in Agriculture, and for Seed Testing and Certification), and Assosementi, which includes about 30 companies involved in seed research. The meeting will be conducted in the premises of the Centro ricerche sul riso (National rice research center) in Castello d'Agogna, according to local sources.

Issues such as the introduction of new rice seed varieties, their resistance to diseases like rice blast and their requirement of nitrogen fertilizers will be dealt with in the meeting.

The meeting will also review the results of testing of various methods that deal with the use of sewage sludge in agriculture; and the results of agronomic testing and the seeding activities conducted by the National Agency for Rice in co-operation with CRA-SCS and Assosementi.

Seed companies will be encouraged to present new seed varieties and awards will be presented to seed breeders.

Oryza Afternoon Recap - Chicago Rough Rice Futures Recover Slightly but Remain near Multi-year Lows Feb 03, 2015

Chicago rough rice futures for Mar delivery settled 8 cents per cwt (about $2 per ton) higher at $10.385 per cwt (about $229 per ton). The other grains rallied today; Soybeans closed about 2.9% higher at $9.5950 per bushel; wheat finished about 4.3% higher at $4.9375 per bushel, and corn finished the day about 4.3% higher at $3.7075 per bushel.U.S. stocks traded mostly higher on Tuesday on continued momentum from strengthening oil prices and encouraging developments in the Euro zone.

The Dow Jones Industrial Average surged more than 225 points, or 1.3% to 17,601. Oil extended the past few days' gains to trade as much as more than 5% higher on Tuesday to hold above the key $50 level. The energy sector traded 2.9% higher to lead advancers on the S&P 500, on track for 4 straight days of gains. Firming oil prices and news out of Greece cheered U.S. markets into the close on Monday, putting the S&P 500 above 2,000 points in the close and the Dow up nearly 200 points. Greece's Finance Minister Yanis Varoufakis unveiled proposals on Monday to end the confrontation with its creditors by swapping outstanding debt for new growth-linked bonds, the Financial Times reported.

On Tuesday, Greek Finance Minister Yanis Varoufakis meets with his Italian counterpart in Rome. Back in the United States, St. Louis Federal Reserve Bank President James Bullard on Tuesday downplayed the Fed's nod to international developments in its latest policy statement, saying it was simply an acknowledgement of constant U.S. central bank discussion on the potential impact of global market events. Bullard repeated his view that the Fed needs to raise rates sooner and then move gradually higher after that. He also said that the oil price plummet is distorting market-based inflation expectation measures, and that these measures should be set aside until energy prices stabilize. Gold is trading about 0.9% lower, crude oil is seen trading about 7% higher, and the U.S. dollar is seen trading about 1.1% lower at about 1:00pm Chicago time.

Monday, there were 2,282 contracts traded, up from 2,265 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 139 contracts to 10,301.

Japan Seeks to Import 30,000 Tons of Rice in SBS Tender Feb 03, 2015

Japan is seeking to import about 30,000 tons of rice in a Simultaneous Buy and Sell (SBS) tender, according to official sources.Japan seeks to buy about 27,000 tons of brown/milled rice and about 3,000 tons of broken/milled rice for delivery by August 15, 2015.The last date for tender application is February 17, 2015.This is the seventh SBS import tender issued by Japan in FY 2014 (April 2014 - March 2015).

Enrollment Begins for First Massive Open Online Course in Agriculture Feb 03, 2015

Chennai, India (3 February 2015) – In a step to significantly open opportunities for agricultural professionals in India to have access to low-cost, high-quality agricultural education, enrollment is now open for the first of a series of Massive Open Online Courses (MOOCs) in agriculture.The opening of the free online course on “Diseases of Horticultural Crops and their Management – PATH372.1X” (https://www.iitbombayx.in/courses/NVAforIA/PATH372.1x/2015-16/about ) being offered through the National Virtual Academy of Indian Agriculture was announced yesterday (2 February) in Chennai by Dr MS Swaminathan, Father of India's Green Revolution and Emeritus Chair of the MS Swaminathan Research Foundation (MSSRF).

“I am happy to announce the launch of this first ever MOOCs for agricultural professionals – a timely initiativeas knowledge revolution is the need of the hour,” said Dr MS Swaminathan.“The course could significantly push the bar for quality online education to meet the requirements specifically of India’s agricultural education system, where available resources are scarce relative to the extremely large audience – in a country where more than 70% of the population is involved in agriculture directly or indirectly,” he added.This first MOOCs through the National Virtual Academy of Indian Agriculture is an initiative of a team of ICT and agriculture experts and educators fromthe International Crops Research Institute for the SemiArid Tropics (ICRISAT), with its global headquarters in Hyderabad, and partners together with the Indian Institute of Technology (IIT) Bombay.“Global educational institutions are increasingly adopting MOOCs and given India’s need for reaching out to largest possible

number of learners, MOOCs are seen as the best way forward to ensure quality agricultural education,” said by Dr David Bergvinson, Director General, ICRISAT. “I am excited about this new opportunity to modernize the way we educate agriculture students, young scientists, extension professionals and farmers to stimulate innovation and motivate them about agriculture as a science and an enterprise,” Dr Bergvinson added.“There is an increased interest across the globe in recent years to strengthen agriculture education, bringing together all ideas and innovation in agriculture to tackle the problem of feeding the world’s poorest of the poor,” according to Dr Peter Carberry, Deputy Director General - Research, ICRISAT.“MOOCs is part of an exciting journey to broaden global partnership in offering various high-quality agriculture courses aimed at creating hunger fighters to tackle the zero-hunger challenge for a food-secure future,” added Dr Dileepkumar Guntuku, Global Leader, Knowledge Sharing and Innovation and Director for Center of Excellence in ICT Innovations for Agriculture, ICRISAT. The course materials for the first MOOCs on “Diseases of Horticultural Crops and their Management – PATH372.1X” have been methodically planned and prepared by highly experienced team of educators and professors in the field of agriculture who have devoted their time and effort to educate the Indian masses on sustainable agriculture practices. The course starts from 9 February to 6 April 2015.

The launch of the National Virtual Academy for Indian Agriculture to promote MOOCs in agriculture is a regional initiative of the new global education consortium, One Agriculture – One Science (http://www.oneagriculture.org). This consortium is a unique international partnership between ICRISAT and top agricultural universities, research organizations and other related agencies from India, Africa and the USA working towards revitalizing global agricultural education, capacity building and technology transfer to address the challenges of global food and nutritional security.The opening of the enrollment for the first MOOCs in agriculture was announced at the inaugural eventof the 10th Convocation of Jamsetji Tata National Virtual Academy and 9th Convention of Grameen Gyan Abhiyan – Rural Knowledge Movement on Role of Information and Communication Technologies (ICT) in Achieving Sustainable Development Goals of Zero Hunger Challenge, held on 2 February 2015 at MSSRF, Chennai, India. ### About ICRISAT The International Crops Research Institute for the Semi-Arid-Tropics (ICRISAT) is a nonprofit, non-political organization that conducts agricultural research for development in Asia and sub-Saharan Africa with a wide array of partners throughout the world. Covering 6.5 million square kilometers of land in 55 countries, the semi-arid tropics have over 2 billion people, and 644 million of these are the poorest of the poor. ICRISAT innovations help the dryland poor move from poverty to prosperity by harnessing markets while managing risks – a strategy called

Inclusive Market- Oriented development (lMOD). ICRISAT is headquartered in Patancheru near Hyderabad, Andhra Pradesh, India, with two regional hubs and six country offices in subSaharan Africa. It is a member of the CGIAR Consortium. About ICRISAT: www.icrisat.org; For ICRISAT’s scientific information see: http://EXPLOREit.icrisat.org CGIAR is a global agriculture research partnership for a food secure future. Its science is carried out by 15 research Centers who are members of the CGIAR Consortium in collaboration with hundreds of partner organizations. www.cgiar.org

FAO Estimates Philippines 2015 Rice Imports at 1.8 Million Tons; Unchanged from 2014 Feb 03, 2015

The UN's Food and Agricultural Organization (FAO) has forecasted the Philippines 2014 rice imports to remain at last year's level of around 1.8 million tons reflecting the government's efforts to stabilize domestic rice prices and replenish public stocks.

The FAO forecasts Philippines 2014 paddy rice production at around 19.137 million tons (around 12 million tons, basis milled) , up about 2% from an estimated 18.8 million tons (around 11.84 million tons, basis milled) in 2013 despite a 2% reduction in paddy rice acreage due to sufficient irrigation water supply, expansion of irrigated areas, improved seeds and higher fertilizer use.

According to the FAO, the average prices of regular and well-milled rice varieties continued to decline in January 2015 for the fifth consecutive month after continuously increasing since last October, due to increased supplies from the 2014 main season harvest.

Average retail prices of well milled rice declined to around 39,100 pesos per ton (about $880) in January 2015 from around 39,350 pesos per ton (about $880) in December 2014 and average wholesale prices of well milled rice declined to around 36,540 pesos per ton (about $820) in January 2015 from around 36,750 pesos per ton (about $820) in December 2014. Similarly, average retail prices of regular milled rice declined to around 42,780 pesos per ton (about $960) in January 2015 from around 42,930 pesos per ton (about $960) in December 2014 and average wholesale prices of regular milled rice declined to around 39,780 pesos per ton (about $890) in January 2015 from around 39,990 pesos per ton (about $890) in December 2014.

The National Food Authority (NFA) may import an additional 500,000 tons of rice in between March and May 2015 to boost stocks and ensure price stability during the lean season (June August).

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.

Oryza U.S. Rough Rice Recap – Prices Seen Stable But More Demand Needed to Keep Them From Falling Further

Feb 03, 2015

The U.S. cash market stabilized today after the futures market recovered from a sell-off overnight however buy interest remains thin and many sellers are still looking to move their paddy ahead of planting this spring.

Most analysts sound like a broken record noting that the only thing keeping prices from falling further is an increase in export demand. As the saying goes; the best cure for low prices is lower prices.

Philippines Plans to Export Hybrid Rice Seeds to Papua New Guinea Feb 03, 2015

The Philippines, a traditional rice importer, is planning to export hybrid rice seeds to Papua New Guinea, according to local sources.

The Chairman of SL Agritech Corp, involved in the production of hybrid rice in the country, told local sources the Philippine government will soon sign a Memorandum of Understanding (MoU) with the Papua New Guinea government to export rice seeds to Oceania country.

He noted that the Philippine Ambassador to Papua New Guinea has presented hybrid rice samples to some government officials and private companies.

A private coffee company in Papua New Guinea is keen on producing and commercializing hybrid rice in the country and the government is reportedly supporting the firm's plans. Already a pilot program to grow hybrid rice in Papua New Guinea is being conducted by Philippines' SL Agritech, and harvest of these pilot crops is expected to to be done in March this year.

Papua New Guinea does not produce any rice and imports all the rice needed for its domestic consumption. The Chairman of Sl Agritech noted that though the lands of Papua New Guinea have been not used for agriculture so far, rice can be grown organically or with little fertilizers.

He added that the Philippines is becoming a part of the history of agriculture in Papua New Guinea and help it have rice supply of its own.

USDA estimates Papua New Guinea to import around 170,000 tons of rice in MY 2014-15 to meet its annual consumption needs.

Thailand, Vietnam Rice Sellers Lower Some of Their Quotes; Other Asia Rice Quotes Unchanged Today Feb 03, 2015

Thailand rice sellers lowered their quotes for parboiled rice by about $5 per ton to around $405 $415 per ton today. Vietnam rice sellers lowered their quotes for Jasmine rice by about $10 per ton to around $450 - $460 per ton. Other Asia rice sellers kept their quotes mostly unchanged.

5% Broken Rice Thailand 5% rice is quoted at around $405 - $415 per ton, about $50 per ton premium on Vietnam 5% rice shown at around $355 - $365 per ton. India 5% rice is quoted at around $395 $405 per ton, about $40 per ton premium on Pakistan 5% rice quoted at around $355 - $365 per ton.

25% Broken Rice Thailand 25% rice is quoted at around $365 - $375 per ton, about $40 per ton premium on Vietnam 25% rice shown at around $325- $335 per ton. India 25% rice is quoted at around $360 - $370, about $50 per ton premium on Pakistan 25% rice quoted at around $310 - $320 per ton.

Parboiled Rice Thailand parboiled rice is quoted at around $405 - $415 per ton, down about $5 per ton from yesterday. 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. India's 100% broken rice is shown at around $295 - $305 per ton, about $15 per ton premium on Pakistan broken sortexed rice quoted at around $280 - $290 per ton.

TREA Estimates 2015 Thailand Rice Exports to Decline 9% y/y to 10 Million Tons Feb 03, 2015

The Thai Rice Exporters Association (TREA) is estimating Thailand's 2015 rice exports to decline to around 10 million tons, down about 9% from about 10.97 million tons exported in 2014 due to strong competition from Vietnam, according to Reuters.The TREA Chairman told reporters that Vietnam is likely to capture more market share as it had lowered prices. He also noted that the government may not be able to sell its targeted 10 million tons from its stockpiles as there is limited appetite for old rice crop.

Declining demand from African countries, especially Nigeria (as falling oil prices are reducing their buying capacity), would also impact Thai parboiled rice exports, he said.

According to Bloomberg, the TREA Chairman also noted that Vietnamese rice has become more competitive since the devaluation of Dong, while the strengthening Baht has made Thai rice less competitive in the global markets.

Currently, Thai 5% rice is quoted at around $405 per ton compared to about $360 per ton of Vietnam 5% rice, about $400 per ton of India 5% rice and about $360 per ton of Pakistan 5% rice. The TREA President said he is expecting the current price of Thai 5% rice to drop by about 3% over the next few weeks.

USDA Post Estimates 2015 Japan Rice Imports at 700,000 Tons; Up 8% from Last Year Feb 03, 2015

The USDA Post has estimated Japan to import around 700,000 tons of rice in 2015, up about 8% from an estimated 650,000 ton in 2014 due to an expected decline in production.Based on production data from the Ministry of Agriculture, Forestry and Fisheries (MAFF), the Post reports that the 2014 rice production declined about 2% to around 7.679 million tons from around 7.832 million tons in 2013. The decline is attributed to a decline in the planting area by about 1.5% y/y to around 1.573 million hectares.

Cambodia Rice Federation Seeks to Raise Development Fund from Exporters Feb 03, 2015

Cambodia Rice Federation (CRF) has approved to raise the requisite funding for rice sector development through the export fees paid by the rice exporters, according to local sources.The CRF decided that its members should pay an export fee of about $0.50 per tons of long-grain white rice and about $1 per ton of fragrant rice towards the fund creation. The fund will reportedly used for educating rice farmers about potential crop issues through television and newspaper advertisements, as well as promoting Cambodian rice overseas.

The CRF President told local sources that they need about $777,000 for the development of the rice sector. He noted that the Federation was earlier seeking funds from the private sector, but since approvals from respective organizations has been delaying the development process, they decided on collecting export fee from exporters.However, there are concerns that introduction of the export fees is likely to make the exporters to increase their export quotes (or accept lower margins) thereby making Cambodian rice less competitive in the global market, potentially reducing the nation’s rice exports.

Recently, the CRF also sought a loan of arounf $300 million from China to develop warehouses, which can store a total of 1.2 million tons of paddy/rice, in the country to ensure uninterrupted supplies to millers and exporters. Chinese authorities are yet to respond to a draft memorandum of understanding (MoU) sent by Cambodia's Ministry of Economy and Finance.Cambodia exported about 387,100 tons of rice in 2014, up about 2% from around 378,856 tons exported in 2013, according to the Secretariat One Window Service (SOWS-REF) under the Ministry of Trade.

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 (including official exports and unofficial exports to Vietnam and Thailand), up about 20% from an estimated 1 million tons in 2014. a

Oryza Overnight Recap - Chicago Rough Rice Futures Continue to Slide as Bears Remain in Control of Price Direction Feb 03, 2015

Chicago rough rice futures for Mar delivery are currently listed 10 cents per cwt (about $2 per ton) lower at $10.205 per cwt (about $225 per ton) ahead of early floor trading in Chicago. The other grains are all seen higher: soybeans are currently seen about 1.1% higher, wheat is listed about 1.5% higher and corn is currently noted about 1.3% higher.U.S. stocks index futures gained on Tuesday, following European and Asian bourses higher as oil prices rebounded. Brent and light crude oil each traded more than 1% higher on Tuesday, taking gains into a third day.

Factory orders for December will be in focus in terms of economic data on Tuesday, along with vehicle sales for January. The former is expected to show a fifth consecutive monthly decline.

Meanwhile, Greece continues a charm offensive around Europe to drum up support for a more sympathetic debt deal. On Tuesday, Greek Finance Minister Yanis Varoufakis meets with his Italian counterpart in Rome. Gold is currently trading about 0.8% lower, crude oil is seen trading about 2% higher, and the U.S. dollar is currently trading about 0.5% lower at 8:30am Chicago time.

USDA Post Estimates Russia's 2015 Rice Exports to Increase 14% y/y Backed by Ruble Depreciation Feb 03, 2015

The USDA Post estimates Russia to export around 160,000 tons of rice in 2015, up about 14% from around 140,000 tons exported in 2014, and about 14% from USDA's official estimates of around 140,000 tons due to an expected continuation of the depreciation of the Russian ruble, which has been depreciating since September 2014.USDA Post has estimated Russia's 2015 rice imports to remain at last year's level of around 250,000 tons.

However, Russian rice trade is likely to be partly impacted by the strengthening of the phytosanitary control of export facilities and elevators by the Russian Federal Service on Veterinary and Phytosanitary Surveillance (VPSS). The processes are expected to delay issuance of phytosanitary certificates, according to the Post.

The Post estimates 2014-15 (January - December) Russia milled rice production to increase to around 680,000 tons, up about 12% from an estimated 608,000 tons last year due to an increase in area harvested area. Based on preliminary estimates from various rice growing provinces, the Post estimates the area sown for 2014-15 rice crop at around 195,000 hectares, up about 4% from around 188,000 hectares in 2013-14. Based on the data from the Ministry of Agriculture, the Post reports that the by mid-December 2014, the area sown to winter grains, including rice, for the 2015 crop stood at around 16.44 million hectares, up about 12% from around 14.68 million hectares last year.

It estimates the paddy yield per hectare to increase to around 5.36 tons in 2014-15, up about 8% from around 4.95 tons in 2013-14. The Post estimates Russia's 2015 ending stocks at around 109,000 tons, up about 22% from around 89,000 tons in 2014 due to an increase in production. It estimates Russia's 2014 rice consumption to increase to around 750,000 tons, up about 4% from around 720,000 tons in 2014.

USDA Post Estimates MY 2014-15 Brazil Rice Exports at 900,000 Tons; Unchanged from last year Feb 03, 2015

The USDA Post is estimating Brazil's MY 2014-15 (April 2014 - March 2015) rice exports at around 900,000 tons, unchanged from MY 2013-14 and unchanged from USDA's official estimates of about 900,000 tons.The Post reports that with the U.S. relaxing trade restrictions

with Cuba, Brazil is concerned that the U.S. may cut into its market share in Cuba because of the competitive pricing by the U.S. as well as its proximity and shipping costs. Cuba accounted for about 11% of Brazil's rice exports in 2014 and remained the third largest importer of the Brazilian rice after Venezuela and Senegal.

The Post estimates MY 2014-15 Brazil rice imports at around 700,000 tons, unchanged from MY 2013-14 and unchanged from USDA's official estimates of about 700,000 tons.It estimates MY 2014-15 milled rice production at around 8.5 million tons, up about 2.4% from an estimated 8.3 million tons last year; and up about 2.4% from USDA's official estimates of about 8.3 million tons due to a slight increase in paddy rice acreage. The Post estimates Brazil's paddy rice acreage to increase to about 2.45 million hectares in MY 2014-15, up about 1% from about 2.42 million hectares last year.The Post estimates 2014-15 Brazil's milled rice consumption to slightly increase to around 7.95 million tons from an estimated 7.9 million tons last year. It estimates 2014-15 Brazil's ending stocks to increase about 48% to around 1.078 million tons from around 728,000 tons last year.