7th december,2015 daily exclusive oryza rice e newsletter by riceplus magazine

Daily Exclusive ORYZA Rice E-Newsletter

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www.ricepluss.com www.riceplusmagazine.blogspot.com

December 07 ,2015 Vol 5,Issue XII


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China Signs Contract to Import One Million

Tons of Rice from Thailand

Dec 04, 2015

China's state-owned grains trader COFCO has signed a contract to import one million tons of

Thai rice on December 3, 2015, according to Reuters.

COFCO will reportedly begin negotiations on batch contracts as early as possible. The company

told in a statement on its website that the deal would help strengthen the sine-Thai friendship the

economic cooperation.

China also signed deal to buy 200,000 tons of rubber from Thailand.

Both China and Thailand signed a Memorandum of Understanding (MoU) to build a 900-

kilometre railway line from the Thai-Lao border to Bangkok. The two countries have reportedly

not agreed on a price for the rail project but China is understood to have agreed to finance the

project with a 2.5% loan. Thailand is reportedly negotiating for a 2% loan.

The agreements signed with China are expected to help boost the sluggish growth rate of

Thailand.

First Batch of Thai Rotten Rice Auctions

Fetches $5.5 Million

Dec 04, 2015

The first batch of Thai rotten rice auctions for about 37,412 tons has fetched about 198 million

baht (around $5.5 million), according to Reuters.

The low-quality rice intended for industrial use was reportedly sold at an average price of 5,020

to 5,420 (around $140 - $150) baht per ton.

The Director-General of the Foreign Trade Department told reporters that "the department would

propose the outcome of the auction to the committee handling the rice sales today and later to the

National Rice Policy Committee for final approval."

The Permanent Secretary of the Commerce Ministry added that the rotten rice is no longer fit for

human consumption and it is essential to dispose off the rotten rice stocks in order to cut down


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the storage costs. The government reportedly spends about 30 million baht ($837,614) per ton for

storing and maintaining the rice stocks.

The government is planning to sell about 2 million tons of rotten rice from stockpiles, for

industrial use, in quantities between 1,000 and 6,000 tons.

The military government sold around 4.6 million tons of stockpiled rice raising around 49 billion

baht (around $1.4 billion) in the ten auctions conducted since it took over in May 2014. It still

holds about 13 million tons of rice stocks accumulated from the previous government's rice

pledging scheme, of which about 6 million tons are "below-standard or rotten" and are judged

unfit for human consumption, according to a Commerce Ministry statement.

Guinea-Bissau Paddy Rice Production to

Increase Sharply in 2015, Says Government

Report

Dec 04, 2015

Guinea-Bissau paddy rice production is likely to reach around 170,000 tons in 2015, up about

28.1% from around 132,700 tons, produced in 2014, CPAFRICA quoted a joint report by the

government of Guinea-Bissau, the World Food Program (WFP) and the Permanent Inter-State

Commission for the Fight Against Drought in the Sahel (CILSS).

However, the production is about 8.9% below the last five-year average, according to the report,

which is based on surveys of 74 farms across the country and field visits between September 28

and October 2, 2015.

The report also states that the official sale price of rice in the country increased to 350-600 CFA

francs per kilogram (around $564 - $968 per ton) compared to 250-350 CFA francs (around $403

- $600 per ton) in 2014.

USDA estimates Guinea-Bissau to produce 167,000 tons of paddy rice (around 100,000 tons,

basis milled) and import around 160,000 tons in in 2015-16 (October - September) to meet a

consumption demand of around 260,000 tons.

Italian Researchers Develop Thermal

Insulating Material from Rice Husk

Dec 04, 2015


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Researchers from the University of Pavia in Italy have developed an insulating material called

ecoAerogel, which is similar to airgel that is used to by NASA for space exploration and

missions, according to local sources.

The material is still in the testing phase and its production has been too expensive and is

associated with high pollution. However, since it is produced in accordance to the principles of

environmental sustainability, it seems to be the best thermal insulator in the market.

Stefania Grande, the team leader of the research team involved in the project, is keen on

patenting the product. He told local sources that the rice ash contains very high rates of silicon

but contains no traces of toxic substances. It looks like a soft white spray and can be used in the

building and clothing industries as well in civil applications.

The research team is planning to use the laboratories of the University of Pavia to test the

ecoAerogel. They are keen on building the first plant within a few months.

Global Rice Quotes

December 4th, 2015

Long grain white rice - high quality

Thailand 100% B grade 360-370 ↔

Vietnam 5% broken 370-380 ↔

India 5% broken 345-355 ↔

Pakistan 5% broken 320-330 ↔

Myanmar 5% broken 405-415 ↔

Cambodia 5% broken 415-425 ↔

U.S. 4% broken 485-495 ↔

Uruguay 5% broken 515-525 ↔

Argentina 5% broken 530-540 ↔

Long grain white rice - low quality

Thailand 25% broken 335-345 ↔


Pakistan 25% broken 295-305 ↔

Cambodia 25% broken 400-410 ↔

India 25% broken 320-330 ↔

U.S. 15% broken 515-525 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 345-355 ↔

Pakistan parboiled 5% broken stxd 405-415 ↔

India parboiled 5% broken stxd 340-350 ↔

U.S. parboiled 4% broken 590-610 ↔

Brazil parboiled 5% broken 545-555 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 700-710 ↔


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Vietnam Jasmine 435-445 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 830-840 ↔

Brokens

Thailand A1 Super 325-335 ↔


Pakistan 100% broken stxd 280-290 ↔

Cambodia A1 Super 355-365 ↔

India 100% broken stxd 280-290 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 330-340 ↔

Brazil half grain NQ ↔

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

Oryza Weekly: Rice Prices Flatten on Thin

Demand; Forecasters See Lower Production

in 2016

Dec 05, 2015

The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes,

ended the week at about $391 per ton, down about $2 per ton from a week ago, down about $3

per ton from a month ago, and down about $47 per ton from a year ago.

In its November 2015 Grain Market Report, the International Grains Council forecasts 2015-16

global rice production to be around 474 tons, down about 1% from 2014-15 due to anticipated

decline in some of the top-producing countries, such as India and Thailand, which is only

partially offset by the improved harvest in other Asian countries.

The FAO All Rice Price Index declined to around 196 points in November 2015, down about

1.5% from October.

Thailand

Thailand 5% broken rice is today shown at about $355 per ton, unchanged from a week ago,

down about $5 per ton from a month ago, and down about $55 per ton from a year ago.

In the first ten months of 2015, Thailand exported around 7.814 million tons of rice, a decrease

of about 11% from the same period last year. In terms of value, exports earned around $3.643

billion, down about 15% from the same period last year.


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The Honorary President of the Thai Rice Exporters Association expects Thai rice export prices,

which are currently slightly below Vietnam prices, to increase by about 10-15% in the first

quarter of 2016 and another 10-15% in the second quarter if the dry spell continues. Thai Hom

Mali rice prices have reached a low of about $720 - $730 per ton from a previous peak of $1,200

per ton and are lowest in six years, according to Thai rice exporters.

In the first auction of stockpiled rotten rice by the government, two private Thai firms won the

bid to buy around 37,413 tons worth 198 million baht (about $5.53 million).

China's state-owned grains trader COFCO has signed a contract to import one million tons of

Thai rice on December 3, 2015.

Vietnam

Vietnam 5% broken rice is today shown at about $375 per ton, unchanged from a week and

month ago, and down about $15 per ton from a year ago.

Vietnam’s rice exports may reach about 6.8 million tons in 2015, according to the Centre for

Informatics and Statistics under the Ministry of Agriculture and Rural Development.

During the period January 1 – November 23, Vietnam exported about 5.372 million tons of rice,

down about 8% from the first eleven months of 2014. The average rice export price so far in this

year stands at about $409.72 per ton (FOB), about 6.5% less than the same period last year.


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Cambodia & Myanmar

Cambodia 5% broken rice is today shown at about $420 per ton, unchanged from a week and a

month ago, and down about $40 per ton from a year ago.

Myanmar 5% broken rice is today shown at about $410 per ton, unchanged from a week and a

month ago.

India

India 5% broken rice is today shown at about $350 per ton, unchanged from a week and a month

ago, and down about $50 per ton from a year ago.

Wholesale basmati rice prices in India’s capital, which have been increasing since the beginning

of November, have declined this week on adequate stocks from higher supplies and sluggish

demand.

India average wholesale rice prices, which declined in October 2015 with the beginning of the

kharif (June-December) rice harvest, have increased in November on concerns of lower output

due to El Nino-induced below-average monsoon rains in many rice-growing areas.

Rice procurement by the Food Corporation of India and state government agencies for the kharif

marketing season 2015-16 (October-September) has increased significantly in the first two

months compared to last year.

Pakistan

Pakistan 5% broken rice is today shown at about $325 per ton, unchanged from a week ago, up

about $10 per ton from a month ago, and down about $60 per ton from a year ago.

Basmati rice export prices have declined for the third consecutive month in November after

increasing in August.

Central & South America

Brazil 5% broken rice is today shown at about $500 per ton, unchanged from a week ago and a

month ago, and down about $50 per ton from a year ago. The Brazilian paddy rice index

maintained by the Center for Advanced Studies on Applied Economics (CEPEA) reached around

41.35 real per 50 kilograms as of December 02, 2015, slightly up from around 41.28 real per 50

kilograms recorded on November 23, 2015. During the first ten months of 2015, Brazil has

exported around 979,215 tons of rice. In October, Brazil exported around 126,973 tons of rice,

about 5% less than in September.

Five per cent broken rice from Uruguay and Argentina is today shown at about $520 per ton,

down about $15 per ton from a week and a month ago, and down about $80 per ton from a year

ago. The newly elected government of Argentina, which will take office on December 10, is


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proposing a series of agricultural policy changes that could have a significant impact on domestic

and international markets. The changes may lead to significant increases in the sales of

Argentine agricultural commodities, including rice. Argentina has exported around 899,299 tons

of rice in the first eight months of 2015, more than double the amount from the same period in

2014.

In the first eleven months of 2015, Guyana has exported around 497,176 tons of rice, up about

10% from the same period last year.

U.S.

U.S. 4% broken rice is today shown at about $490 per ton, unchanged from a week ago, down

about $5 per ton from a month ago and down about $55 per ton from a year ago.

Chicago rough rice futures for January delivery fell steadily this week, hitting the weekly high

Monday at $12.060 per cwt (about $266 per ton) and then dropping throughout the week before

closing at the weekly low of $11.090 per cwt (about $244 per ton) on Friday afternoon.

The U.S. cash market fell in sympathy with the futures market this week with decreased export

demand further contributing to the decline.

After being gone for nearly a decade, U.S. parboiled long-grain rice is again available in U.K.

retail outlets.

Other Markets

The USDA Post forecasts South Korea’s 2015 rice production to reach about 4.33 million tons,

up about 2% from 2014 despite a decline in acreage due to favorable weather conditions and an

expected increase in yields. South Korea’s state-run Agro Fisheries & Food Trade Corporation

seeks to buy about 55,555 tons of U.S. brown rice in tenders for delivery between March 31 and

April 30.

Taiwan has completed tenders for the 2015 U.S. rice country specific quota of 64,634 tons on

November 17, according to the USDA Post.

The Deputy Agriculture Minister of Iran says the country needs to import around 600,000 tons

of rice before the end of the financial year 2015-16 (April-March) to meet the domestic demand.

The Philippines, which was planning to import an additional 1.3 million tons of rice before the

first half of 2016, may not need to import as much due to better-than-expected domestic rice

output next year, according to the Economic Planning Chief.

Japan’s Agriculture Ministry has lowered the country’s rice production target in 2016 to around

7.43 million tons from last year’s 7.51 million tons, in line with the falling consumption

demand. Japan has bought and sold a total of around 2,578 tons of whole grain/brown rice of the

U.S., Australia, Pakistan, Thailand, and China origins and 1,258 tons of broken rice of U.S.,


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Thailand, China, and Myanmar origins in the third SBS tender of FY 2015-16 (April-March),

conducted on November 18. Japan purchased about 39,839 tons of non-glutinous rice from

Thailand and the U.S. in a tender.

According to the latest data issued by the European Union, rice imports, milled equivalent, by

the EU increased sharply since the beginning of the crop year 2015-16 (September-August). The

EU imported about 260,547 tons of rice during the period September 1- November 24, an

increase of about 19% from the same period last year.

Italian paddy rice prices remained unchanged w/w as of November 24. Separately, researchers

from the University of Pavia in Italy have developed an insulating material called ecoAerogel,

which is similar to airgel that is used to by NASA for space exploration and missions.

Guinea-Bissau paddy rice production is likely to reach around 170,000 tons in 2015, up about

28.1% from around 132,700 tons, produced in 2014

Vietnam Rice Exports Increase Sharply in

October 2015, Reports USDA Post

Dec 04, 2015

Vietnam has exported around 849,383 tons of rice in October 2015, up about 68% from around

505,917 tons exported in September 2015, and up about 41.5% from around 599,948 tons


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exported in October 2014, reports USDA Post based on data from the General Customs Office

and the Vietnam Food Association (VFA) .

The increase in exports can be attributed to an increase in demand from Indonesia and the

Philippines, which are keen on maintaining adequate stocks amid concerns of lower production

due to extending El Nino-induced dry weather conditions.

Asia accounted for around 768,403 tons (about 90% of total rice exports by Vietnam in October

2015) during the month. Month-on-month, Vietnam's rice exports to Asian destinations increased

about 70% from around 452,183 tons exported in September 2015. Year-on-year, they increased

about 54% from around 497,721 tons exported in October 2014.

Vietnam exported around 50,935 tons of rice to Africa (about 6% of total October 2015 exports)

in October 2015, up about 43% from around 35,664 tons exported in September 2015, and down

about 7% from around 54,985 tons exported in October 2014.

Vietnam exported around 22,337 tons of rice to American destinations (about 3% of October

2015 exports), about four times more from around 5,800 tons exported in September 2015, and

down about 29% from around 31,669 tons exported in October 2014.

Vietnam's exports to Australia (about 0.3% of October 2015 exports) declined about 48% to

around 2,417 tons in October 2015 from around 4,630 tons exported in September 2015 and

declined about 72% from around 8,688 tons exported in October 2014.

Vietnam's exports to Europe and CIS countries (about 0.6% of total October 2015 exports)

accounted for around 5,291 tons in October 2015, down about 31% from around 7,640 tons

exported in September 2015 and down about 23% from around 6,885 tons exported in October

2014.

In terms of grade, 5% broken rice exports accounted for around 251,658 tons (or, about 30% of

total October 2015 exports); Jasmine rice exports accounted for around 105,284 tons (or, about

12% of total October 2015 exports); 15% broken rice exports accounted for around 258,224

tons (or, about 30% of total exports in October 2015); 25% broken rice exports accounted for

around 129,398 tons (or, about 15% of total exports in October 2015); glutinous rice exports

accounted for around 45,732 tons (or, about 5% of total October 2015 exports); and 10%, 100%

and other varieties accounted for around 59,087 tons (or, about 7% of total exports in October

2015).

Vietnam exported around 5.35 million tons of rice in the first ten months of 2015, down about

2% from around 5.46 million tons exported during the same period last year


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Oryza CBOT Rough Rice Futures Recap -

Chicago Rough Rice Futures Lost 76.5 Cents

per cwt this Week to Touch Levels Not Seen

Since Early July

Dec 05, 2015

Chicago rough rice futures for Jan delivery settled 5.5 cents per cwt (about $1 per ton) lower at

$11.180 per cwt (about $246 per ton). The other grains finished the day higher on follow-through

strength after a steep rally yesterday; Soybeans closed about 1% higher at $9.0600 per bushel;

wheat finished about 1.2% higher at $4.8450 per bushel, and corn finished the day about 1.2%

higher at $3.8150 per bushel.

U.S. stocks traded nearly 2% higher Friday, mostly shaking off pressure from low oil prices, as

investors cheered a solid jobs report. Traders also attributed some of Friday's gains to recovery

after Thursday's sharp sell-off. In other economic news, the U.S. trade deficit widened

unexpectedly by 3.4 percent to $43.9 billion in October as exports fell to a three-year low,

suggesting that strong dollar pressure on trade could again weigh on economic growth in the

fourth quarter. The major U.S. averages are on track for slight weekly losses.

In early afternoon trade, the Dow Jones industrial average rose 347 points, or 1.9 percent, to

17,822. The S&P 500 traded up 37 points, or 1.8%, to 2,087, with financials leading nine sectors

higher and energy the only decliner. The Nasdaq composite traded up 93 points, or 1.87%, to

5,131. Gold is seen trading about 2.1% higher, crude oil is seen trading about 2.4% lower, and

the U.S. dollar is seen trading about 0.8% higher at about 1:00pm Chicago time.

Thursday, there were 2,129 contracts traded, up from 1,763 contracts traded on Wednesday.

Open interest – the number of contracts outstanding – on Thursday increased by 534 contracts to

13,961.

Prices of Thai Hom Mali Rice Reach Six-Year

Low, Says TREA Official

Dec 04, 2015

The prices of Thai Hom Mali rice have reached a low of about $720 - $730 per ton from a

previous peak of $1,200 per ton and are lowest in six years, local sources quoted the Honorary

President of the Thai Rice Exporters Association (TREA). The prices are currently below the

Cambodian fragrant rice, which is currently trading at $810 - $820 per ton, according to him.


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The official told local sources that prices have gone down mainly because farmers are preferring

to sell their output directly to millers/exporters even at low prices instead of participating in the

government's pledging scheme. The government has been encouraging farmers to pledge their

rice from the current harvest with the Bank for Agriculture and Agricultural Cooperatives

(BAAC) to prevent price falls and ensure better income for farmers. The government has offered

13,500 baht (around $377) per ton of pledged Hom Mali rice.

However, farmers are not keen on joining the scheme due to apprehension that the BAAC would

deduct money from their pledged rice as repayment charges for their debts, according to local

sources. So, they are preferring to sell to millers/exporters despite receiving prices as low as

9,500 baht (around $265) per ton.The TREA official noted that higher yield coupled with

currently low demand also pushed down the global prices. He, however, noted that the demand

would pick up in mid-December ahead of Christmas and the Chinese New Year. According to

local sources, falling Hom Mali rice prices is affecting the purchasing power of farmers in North

and North-east, where most of the Hom Mali rice is grown.

Vietnam Rice Sellers Lower Some of Their

Quotes Today; Other Asian Rice Quotes

Remain Unchanged

Dec 04, 2015

Vietnam rice sellers lowered their quotes for glutinous rice variety by about $15 per ton to

around $480 - $490 per ton today. Other Asian rice sellers have kept their quotes unchanged

from yesterday.

5% Broken Rice Thailand 5% rice is indicated at around $350 - $360 per ton about $20 per ton discount on

Vietnam 5% rice shown at around $370 - $380 per ton. India 5% rice is indicated at around $345

- $355 per ton, about $25 per ton premium on Pakistan 5% rice shown at around $320 - $330 per

ton.

25% Broken Rice Thailand 25% rice is indicated at around $335 - $345 per ton, about $20 per ton discount on

Vietnam 25% rice shown at around $355- $365 per ton. India 25% rice is indicated at around

$320 - $330 per ton, about $25 per ton premium on Pakistan 25% rice shown at around $295 -

$305 per ton.

Parboiled Rice Thailand parboiled rice is indicated at around $345 - $355 per ton. India parboiled rice is

indicated at around $340 - $350 per ton, about $65 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 $325 - $335 per ton, about $5 per ton

discount to Vietnam 100% broken rice shown at around $330 - $340 per ton. India's 100%

broken rice is shown at around $280 - $290 per ton, on par with Pakistan broken sortexed rice

shown at around $280 - $290 per ton.

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

7th december,2015 daily exclusive oryza rice e newsletter by riceplus magazine

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