15th October, 2014 Daily Exclusive ORYZA E-Newsletter by Riceplus Magazine

Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.
com
News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874

15
th
October, 2014

TOP Contents - Tailored for YOU
Latest News Headlines
Brazil Paddy Rice Index Declines Slightly from Last Week
Brazil 2014-15 Paddy Rice Production Estimated at 11.99 Million
Tons, Down 1% from Last Year
China Sets New Record in Hybrid Rice Production
Aid Agencies Preparing for Major Food Assistance in Ebola-Stricken
Countries in 2015
How to Get $1000 Profit from 'Waste' Product Rice Husk
Declining Prices Disappoint India Basmati Rice Producers'
Expectations
Oryza Afternoon Recap - Chicago Rough Rice Futures Continue
Higher Following Yesterdays Bullish Reversal; Grains Rally While Crude
Gets Demolished
South Korea 2014 Rice Production to Reach 4.18 Million Tons,
Down 1% from Last Year
Oryza U.S. Rough Rice Recap - Prices Soften amid Ample Supply and
Limited Demand; USDA Estimates 82% of Crop Harvested
Thailand Plans for 200,000 Tons Rice Auction Next Week
Vietnam Rice Sellers Lower Most of Their Quotes Today; Other Asia
Rice Quotes Unchanged
Global Rice Quotes

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Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com

Brazil Paddy Rice Index Declines Slightly from Last Week
Oct 14, 2014
The Brazilian paddy rice index maintained by CEPEA reached around 36.72 real per 50 kilograms as of
October 13, 2014, down about 0.05% from around 36.75 real per 50 kilograms recorded on October 6, 2014.
In terms of USD per ton, the index reached around $307 per ton on October 13, 2014, up about 2.6% from
around $299 per ton recorded on October 6, 2014.
Tags: Brazil paddy rice index, Brazil CEPEA rice price index

Brazil 2014-15 Paddy Rice Production Estimated at
11.99 Million Tons, Down 1% from Last Year
Oct 14, 2014


Conab has estimated Brazil's 2014-15 paddy rice acreage to around 2.393 million hectares, slightly up from
around 2.387 million hectares in 2013-14.
Paddy rice acreage in the key rice growing Centro-Sul (Center-South) region is projected at 1.549 million
hectares in 2014-15, down about 2% from around 1.579 million hectares in 2013-14. Rice acreage in the
North/Northeast regions is expected to increase to around 844,300 hectares, up about 4% from around 808,400
hectares in 2013-14.
Average rice yield in Brazil in 2014-15 is projected at around 5.314 tons per hectare, up about 4% from around
5.095 tons per hectare recorded in the previous year, according to Conab.
Brazils National Grains Supply Company (Conab) has forecasted the country's 2014-15 paddy rice production
at around 11.99 million tons, down about 1.4% from around 12.162 million tons in 2013-14.
USDA estimates Brazil MY 2014-15 (April March) paddy rice production at around 12.28 million tons,
slightly up from around 12.2 million tons in MY 2013-14. It estimates Brazils 2014-15 paddy rice acreage at


around 2.45 million tons, up about 2% from around 2.4 million tons produced in MY 2013-14. USDA
estimates Brazil to export around 900,000 tons of rice and import around 700,000 tons of rice in 2014.
Tags: Brazil paddy rice production, Conab, Brazil rice acreage, Brazil paddy yield

China Sets New Record in Hybrid Rice Production
Oct 14, 2014
China has achieved another record in hybrid rice production, according to local sources.The sources quoted an
official from the Agriculture Ministry as saying that a team of rice farmers, led by Yuan Longping, in Xupu
County in central China's Hunan Province produced a yield of 1,026.7 kilograms per mu (15.4 tons per hectare)
using hybrid rice varieties. Yuan Longping is known as the "the father of hybrid rice."Ministry officials noted
that the new record surpassed the recently set record of 1,004.5 kilograms per mu (around 15 tons per hectare)
by the hybrid rice variety "Y liangyou 900".
They added that the yields produced by the new varieties have surpassed the 1,000 kilogram per mu (around
14.99 tons per hectare) target set by the Chinese Agriculture Ministry in 2013.China is keen on increasing the
yields from hybrid rice to ensure food security in the country as it has been facing problems in rice cultivation,
mainly of land availability, water resources and soil pollution.Currently, China is the largest producer and
importer of rice in the world. China imported around 2.267 tons of rice, according to data from China Customs
General Administration. It imported 1.503 million tons of rice in the first seven months of 2014 (January -
July), down about 6% from around 1.587 million tons imported during the same period last year.
USDA estimates China to import around 3.9 million tons of rice in 2014, up about 24% from around 3.144 tons
imported in 2013. It expects China to produce around 144 million tons of rice in MY 2014-15 (July - June), up
about 1% from around 142.53 million tons produced in MY 2012-13.
Tags: China hybrid rice production, Yuan Longping, China rice produciton


Aid Agencies Preparing for Major Food Assistance
in Ebola-Stricken Countries in 2015
Oct 14, 2014
USAID is working on the assumption that
there may be up to 250,000 Ebola causalities
by January 2015 in Guinea, Sierra Leone and
Liberia. In this scenario, USAID expects local
markets to stop functioning and rural
households to rely on their own food
production. The number of people requiring
food assistance by February is expected to
reach 1.36 million.Rice is the major staple
crop grown in all three countries by
smallholder households, and it is currently the
harvesting season so household rice stockpiles
should be coming towards their highest point
of the year.
However, the 2014 rice harvest is expected to be lower than average as farmers are generally sticking to using
family labor rather than employing labor from outside the household in order to reduce the chances of
contracting the Ebola virus from others.For families directly affected by the Ebola virus, their rice harvest has
surely suffered as a result which likely means immediate food assistance. The map below showsthat many of
the major rice producing areas; particularly in Liberia and Sierra Leone are some of the worst impacted regions
by the Ebola virus.
Even for the farming families which are able to harvest enough rice for this season, by early 2015 when
household rice stocks begin to dwindle, these households will find it difficult to get access to food.
Traditionally, this is when rural households rely on markets for purchasing food; however, with the potential
likelihood of nonfunctioning local markets by early 2015, even these groups of the population are expected to
depend on food assistance.Rice prices have already been affected in the three countries. Between July and
August, the price of imported rice increased by between 5% and 15% in many of the major food markets in
Sierra Leone and Liberia, and in some cases the increase was more than 15% - see map below.


Tags: Ebola, USAID, rice news, Adam John, food assistence
How to Get $1000 Profit from 'Waste' Product Rice
Husk
Oct 14, 2014
So you thought rice husk was a waste of time and money? Risilikas Technology, Moscow, does a U-turn
to prove that with a little thought, rice husk can be converted into saleable amorphous silica dioxide
(ASD) which, in turn, used in tire production, construction and the pharmaceutical industry. Risilikas
General Director Sergei Pisarenko talks to Oryza about the technology and the machine which can show
how farmers can benefit from rice husk, which has so far been termed as agricultural waste left after rice
milling.
Oryza: So can the machine be installed in a farm or a godown?
Risilika: Manufactured products (ASD) are high end technology. Placement of equipment can only be in the
shops of the enterprise.
Oryza: Where can one install this machine?
Risilika: It is best to build it close to the sources of rice husk, which will reduce the cost of transporting rice
husk.
Oryza: How much rice husk gets converted into amorhphous silica in one go?
Risilika: Depending on the variety of rice, silica content of rice husk is from 18 to 24%. Given the
technological losses, one can expect 150 kg of amorphous silica from one ton of rice husk.
Oryza: How did Rislica manage to make a product that is three times cheaper than a similar product
produced by large corporations?
Risilika: The low cost is due to three key factors.
1. Low cost of raw materials 2 Low consumption of thermal energy (energy is used, which is formed during
the processing of rice husk) 3 Relatively low capital cost of the equipment
Oryza: Can this machine be replicated for waste management of other crops?
Risilika: We plan to work on the creation of technology for the processing of rice straw. The use of technology
Risilika waste from other cultures is not appropriate.


Oryza: Risilika is planning to unveil a full production cycle facility in late 2016. How much does it cost to use
this machine (in dollars)? What is the time taken to make amorphous silica from 100 kg rice husk?
Risilika: The enterprise value for amorphous silica and organic acids from rice husk is estimated to be about 5
million euros ($1,268,880). 5 ton rice husks lead to 1 ton ASD with $1200 sales and 1 ton of bioethanol with
$300 sales. Combined profit is about $1000.
Oryza: Please tell us in brief what happens when the machine is on and the rice husk is introduced into it.
Risilika: Technology Risilika allows you to remove (burn) of rice husk organic components, leaving only silica
compounds.
Oryza: How will the rice farmer benefit from using the machine, especially in waste management?
Risilika: We assume that the plant for the production of amorphous silicon dioxide will build for an industrial
holding company or a large association of farmers. Given the high cost of the enterprise, a farmer is unlikely to
build a plant.
Oryza: Any other products that Risilika is coming up with, especially for the rice industry?
Risilika: Technology Risilika allows you to integrate the production of ethanol and organic acids.
Tags: Rice, rice news, Rice husk, technology, waste, Paddy, machine
Declining Prices Disappoint India Basmati Rice
Producers' Expectations
Oct 14, 2014
Indian basmati rice farmers, who were hopeful of
reaping good returns from basmati rice production
this year, are overly concerned about the declining
basmati rice prices, according to local
sources.Based on last year's above-normal returns
from basmati output, many farmers switched to
basmati production from the regular non-basmati
variety. Slow start of monsoon rains also prompted
many farmers to opt for high-yielding and less
water-consuming basmati variety Pusa


1509. Accordingly, India's basmati rice acreage in the 2014 kharif rice season (June - December) increased
about 40% to around 3.5 million hectares from around 2.5 million hectares last year. According to data from the
Indian Agriculture Ministry, basmati rice output this year is expected to reach around 8.5 million tons, up about
40% from around 6.25 million tons produced last year.
With harvesting for the kharif crop is catching up, basmati rice farmers are starting to feel the pain, according to
local sources. They are not getting expected prices and are forced to sell at low prices due to declining demand.
Local sources say Pusa 1509 is fetching around Rs.2,300-2,700 per quintal (around $376 - $441 per ton) and
Pusa 1121 is expected to fetch around Rs.3,000 per quintal (around $490 per ton). Farmers are getting prices as
low as Rs.1,500 - 2,000 per quintal (around $245 - $327 per ton) for other varieties of basmati. The prices are
very low compared to Rs.4,400 per quintal (around $719 per ton) fetched last year.
Indian basmati rice producers are blaming decline in demand from Iran as the main reason for fall in basmati
rice prices in the country. India's basmati rice exports to Iran dwindled after the Middle East country revised the
accepted level of arsenic content in basmati rice from 150 parts per million (ppm) to 120 ppm in March this
year. According to local sources, India exported about 130,000 tons a month of basmati until February 2014,
but sales have since plunged to 50,000-60,000 tons a month since then. Later, Iran's decision to increase the
import duty for basmati rice to 45% from 22% in September has further snubbed down India's basmati rice
exports to Iran.
Iran is an important destination for India's basmati rice and constitutes about 30% of India's total basmati rice
exports. Local sources say it is uncertain as to when India's basmati exports to Iran would pick up.
India exported around 1.44 million tons to Iran in FY 2013-14 (April - March), which is around 36% of India's
total basmati rice exports of around 4 million tons during the period, according to data from Agricultural and
Processed Food Products Export Development Authority (APEDA). India's total rice exports, including non-
basmati exports, stand at around 10.5 million tons in FY 2013-14, up about 3% from around 10.2 million tons
exported in FY 2012-13, according to APEDA.
Tags: India basmati rice prices, India basmati rice production, India basmati rice exports
Oryza Afternoon Recap - Chicago Rough Rice
Futures Continue Higher Following Yesterdays


Bullish Reversal; Grains Rally While Crude Gets
Demolished
Oct 14, 2014
Chicago rough rice futures for Nov delivery settled 9 cents per cwt (about $2 per ton) higher at $12.720 per cwt
(about $280 per ton). Rough rice futures managed to build on yesterdays bullish reversal and continued higher,
once again finding support from neighboring grain pits which saw gains as much as 3%. Prices are now within 8
cents per cwt (about $2 per ton) of overhead resistance at $12.800 per cwt (about $282 per ton) and traders will
keep a keen eye on this level as an indication of future price direction. A breakout to the upside could likely
trigger additional technical buying and could see prices shoot towards $13.000 per cwt (about $287 per ton).
However; a failure at this level would likely indicate that the market will continue within its current sideways
trading range. The grain complex as a whole rallied today; Soybeans closed about 2.1% higher at $9.6475 per
bushel; wheat finished about 0.8% higher at $5.0925 per bushel, and corn finished the day about 3.2% higher at
$3.5700 per bushel.
U.S. stocks jumped on Tuesday, rebounding from Wall Street's worst three-day rout since 2011, as investors
considered earnings from the banking sector. Dialing back from session highs that had the Dow Jones Industrial
Average rising 142 points, the blue-chip index was lately up 64.38 points, or 0.4%, at 16,385.45. The S&P 500
rose 18.18 points, or 1%, to 1,892.92, with industrials pacing gains that stretched to seven of 10 major industry
groups. The Nasdaq gained 34.67 points, or 0.8%, to 4,248.33. Gold is trading about 0.4% higher, crude oil is
seen trading about 4.5% lower, and the U.S. dollar is seen trading about 0.4% higher at about 1:30pm Chicago
time.
Monday, there were 602 contracts traded, up from 278 contracts traded on Friday. Open interest the number
of contracts outstanding on Monday decreased by 26 contracts to 11,332.
Tags: chicago rough rice futures, U.S. rice market, U.S. rice prices

South Korea 2014 Rice Production to Reach 4.18
Million Tons, Down 1% from Last Year
Oct 14, 2014


South Korea's 2014 rice production is expected to
decline by about 1.1% to reach around 4.18 million
tons from around 4.23 million tons in 2013 due to
reduced rice acreage, local sources quoted the
country's Ministry of Agriculture, Food and Rural
Affairs as saying.The Ministry however, stated that
the output would be sufficient to meet the domestic
demand without the need for increasing imports.
The government is estimating the countrys per
capita rice consumption to fall to about 64.4
kilograms in 2015 from about 65.8 kilograms in
2014 due to change in food habits. However, the
government will import around 400,000 tons of rice to stop prices from falling.The UN's Food and Agriculture
Organization (FAO) also forecasted South Korea to produce around 4.1 million tons, down about 2% from last
year. According to the FAO, South Korea's rice acreage in 2014 stood at around 815,000 tons, down about 2%
from around 832,500 hectares planted last year.Recently, the South Korean government announced its decision
to open its rice import market from January 1, 2015.
It has also indicated that it would impose tariffs of about 513% on rice imports once liberalized. It is also
focussing on protecting the local rice sector from foreign competition.USDA estimates South Korea's milled
rice production at around 4.23 million tons in MY 2013-14 (November - October), up about 6% from around 4
million tons in MY 2012-13. It estimates production to decline to around 4.05 million tons in MY 2014-15. It
estimates South Korea to import around 410,000 tons of rice in MY 2013-14 and MY 2014-15, down about
20% from 510,000 tons imported in MY 2012-13. USDA estimates South Koreas 2014-15 domestic
consumption for rice to decline to around 4.59 million tons from around 4.61 million tons in 2013-14.
Tags: South Korea rice production, South Korea rice imports, South Korea rice market liberalization
Oryza U.S. Rough Rice Recap - Prices Soften amid
Ample Supply and Limited Demand; USDA
Estimates 82% of Crop Harvested
Oct 14, 2014


The U.S. cash market was slightly weaker today however there was little trading as buyers continue to drop
their bids while sellers look for place to move the rice that they dont have room to store.As of today, offers
were decreased to around $12.50-$12.75 per cwt fob farm (about $276-$281 per ton) while bids could still be
seen near $12.50-$12.85 per cwt (about $276-$283 per ton) for October-November however no trades were
reported.
Meanwhile, the Iraqi Grain Board issued another tender, after canceling their last three white rice tenders, for at
least 30,000 tons of long grain white rice of either U.S., Uruguayan, Argentine, Brazilian, Vietnamese, or Thai
origin. Offers need to be submitted no later than October 27 and must remain valid through October 31. In the
meantime, the USDA estimates that as of Oct 12, 82% of the U.S. rice crop has been harvested which was 4%
greater than the previous 5-year average. As of now, the USDA estimates that 85% of the rice crop in Arkansas
has been harvested compared to 59% in California, 100% in Louisiana, 87% in Mississippi, 69% in Missouri,
and 100% in Texas.
Tags: U.S. rice prices
Thailand Plans for 200,000 Tons Rice Auction Next
Week
Oct 14, 2014
Thailand is planning for a new round of rice auction
on October 22, 2014, according to local
sources.According to sources from Commerce
Ministry, the government is planning to put up a total
of 200,000 tons of rice (about 80,000 tons of 5% white
rice and about 120,000 tons of broken rice) for auction
next week. Sources said the details of the auction
would be made public after the Ministry gets approval
from the Chairman of the Rice Policy and
Management Committee.Ministry sources also told
local media that the upcoming auction would be the
last one this year. With the harvest for the main season
rice crop round the corner, the Ministry is planning to suspend further rounds of auctions to prevent downward
pressure on prices.


However, the sources noted that the government will continue to sell rice through government-to-government
(G2G) and government-to-private deals.The Director General of the Foreign Trade Department expressed
concern about the falling rice export prices. She noted that the price of Thai 5% white rice declined by about
1% to around $428 per ton between October 1 - 8, 2014, adding that Thai 5% white rice is well below the Viet
5% white rice, which is being traded at around $433 per ton.The Ministry sold around 140,000 tons of rice in
the previous two auctions raising around 1.7 billion baht (around $52.3 million). Thailand still has around 18
million tons of rice stocks and the military government is keen on selling them over the next three years various
channels such as general auctions, government-to-government sales, direct sales and the Agricultural Futures
Exchange of Thailand (AFET).
A Honorary President of the Thai Rice Exporters Association (TREA) urged the government not to halt rice
auctions saying Thailand may have to lose out some export deals to Pakistan or Vietnam. He noted that East
African countries such as Kenya, Ethiopia and Uganda prefer to buy old rice at low prices.Separately, the Rice
Committee under the supervision of Trat Council of Agriculture is counselling farmers over the government's
assistance program to help them reduce their cost of production. The government declared a subsidy of around
1,000 baht per rai (around $770 per hectare).
Tags: Thai rice sales, Thai rice stocks, Thai rice auctions, All India Rice Exports Association (TREA)

Vietnam Rice Sellers Lower Most of Their Quotes
Today; Other Asia Rice Quotes Unchanged
Oct 14, 2014
Vietnam rice sellers lowered their quotes for 5% broken rice, 100% broken rice and Jasmine rice by about $5
per ton each to around $430 - $440 per ton, $330 - $340 per ton and $575 - $585 per ton respectively.
Other Asia rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is quoted at around $415 - $425 per ton, about $15 per ton discount to Vietnam 5% rice shown
at around $430 - $440 per ton, down about $5 per ton from yesterday. India 5% rice is quoted at around $415 -
$425 per ton, about $15 per ton premium on Pakistan 5% rice quoted at around $400 - $410 per ton.


25% Broken Rice
Thailand 25% rice was last quoted at around $350 - $360 per ton, about $55 per ton discount to Vietnam 25%
rice shown at around $395 - $405 per ton. India 25% rice is quoted at around $370 - $380 per ton, about $20 per
ton premium on Pakistan 25% rice quoted at around $350 - $360 per ton.
Parboiled Rice
Thailand parboiled rice is quoted at around $420 - $430 per ton. India parboiled rice is quoted at around $405 -
$415 per ton, about $20 per ton discount to Pakistan parboiled rice quoted at around $425 - $435 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, was last quoted at around $310 - $320 per ton, about $20 per ton discount to
Vietnam broken rice shown at around $330 - $340 per ton, down about $5 per ton from yesterday. India broken
sortexed rice is quoted at around $320 - $330 per ton, on par with Pakistan broken sortexed rice quoted at
around $320 - $330 per ton.
Tags: Vietnam rice prices, India rice prices, pakistan rice prices, Thailand rice prices

Global Rice Quotes

October 15th, 2014

Long grain white rice - high quality
Thailand 100% B grade 435-445
Vietnam 5% broken 435-445
India 5% broken 415-425
Pakistan 5% broken 395-405
Cambodia 5% broken 465-475
U.S. 4% broken 525-535
Uruguay 5% broken 595-605
Argentina 5% broken 595-605

Long grain white rice - low quality
Thailand 25% broken NQ


Pakistan 25% broken 345-355
Cambodia 25% broken 450-460
India 25% broken 370-380
U.S. 15% broken 510-520

Long grain parboiled rice
Thailand parboiled 100% stxd 420-430
Pakistan parboiled 5% broken stxd 425-435
India parboiled 5% broken stxd 405-415
U.S. parboiled 4% broken 600-610
Brazil parboiled 5% broken 595-605
Uruguay parboiled 5% broken NQ

Long grain fragrant rice
Thailand Hommali 92% 1015-1025
Vietnam Jasmine 575-585
India basmati 2% broken NQ
Pakistan basmati 2% broken NQ
Cambodia Phka Malis 880-890

Brokens
Thailand A1 Super 340-350
Pakistan 100% broken stxd 320-330
Cambodia A1 Super 360-370
India 100% Broken stxd 320-330
Egypt medium grain brokens NQ
U.S. pet food 445-455
Brazil half grain NQ

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

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Mujahid Ali
mujahid.riceplus@gmail.com
+92 321 369 2874

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