22nd 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

22
nd
October, 2014

TOP Contents - Tailored for YOU
Latest News Headlines
Bangladesh Farmers Unhappy with Government Cost Fixing Policy
Brazil Paddy Rice Index Declines Slightly from Last Week
Indonesian New President Aims at Self-Sufficiency in Rice and
Other Food Staples in Four Years
Italian Ag Minister Tries to Reassure Rice Farmers amid EU Policy
Framework Restrictions
Oryza Afternoon Recap Chicago Rough Rice Futures Rebound as
Technicals and Outside Markets Provide Support
Global Rice Quotes
India's Saline Tolerant Rice Variety 'Korgutt' Gets Unique
Germplasm Status
Oryza U.S. Rough Rice Recap Bids Fall as Sellers Look to Move
Rice Quickly
Oryza Overnight Recap - Chicago Rough Rice Futures Remain Little
Changed as Traders Eye nearby Support at $12.500 per cwt
Rice as a Cash Crop?
Philippines Third Quarter Paddy Production Estimated at 3.01
Million Tons, Down 10.5% from Last Year
Thailand to Sell 207,899 Tons of Rice in Auction Next Week
Pakistan Exports 221,715 Tons of Rice in September 2014, Up 20%
m/m and Down 3% y/y
Vietnam Rice Sellers Increase Some of Their Quotes Today; Other
Asia Rice Quotes Unchanged

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Bangladesh Farmers Unhappy with Government
Cost Fixing Policy
Oct 21, 2014
Bangladesh rice farmers have slammed the government for favouring rice millers while fixing production costs
for un-husked and husked rice for this year's Aman rice crop (April - December), according to local sources.The
Bangladesh government has fixed production costs for un-husked rice (paddy) during this year's Aman crop
season at around Tk 18 per kilogram (around $228 per ton), up about 6% from around Tk 17.02 per kilogram
(around $216 per ton) considering increased costs of tilling, organic fertilizers, zinc, irrigation as well as labor
costs.
While it fixed the production costs for husked rice (milled rice)
at around Tk 28 per kilogram (around $355 per ton), up about
10% from around Tk 25.42 per kilogram (around $322 per
ton).Officials from the Ministry of Agriculture were quoted as
saying that they will shortly fix the government paddy and rice
procurement prices as well.As the procurement costs are based
on estimated production costs, farmers are unhappy with the
production costs estimated for paddy. They say the estimated
costs are too low and the government has been favorable to
millers in this sense.
The Director of a farmers' group said the costs fixed by the government would not be beneficial to farmers in
any manner. He noted that the government's policy would help millers to procure un-husked rice from farmers
at lower prices. On the other hand farmers may have to buy husked rice from millers at higher prices. He added
the rice farmers would lose out twice, once while selling un-husked rice and second while buying husked rice.
However, the Agriculture Ministry officials noted that they fixed the costs based on the inputs provided by the
Department of Agriculture Marketing, Department of Agricultural Extension and Bangladesh Rice Research
Institute (BRRI).According to Bangladesh's Directorate General of Food (DGF), the government is planning to
procure a total of 1.5 million tons of rice locally during FY 2014-15 (July - June).USDA estimates
Bangladeshs MY 2014-15 (July 2014 June 2015) milled rice production to slightly increase to about 34.6
million tons from an estimated 34.39 million tons in MY 2013-14. It estimates Bangladesh to import 678,000
tons of rice in 2014 and around 500,000 tons of rice in 2015.


Tags: Bangladesh rice production costs, Bangladesh rice procurement, Bangladesh rice production

Brazil Paddy Rice Index Declines Slightly from Last
Week
Oct 21, 2014
The Brazilian paddy rice index maintained by CEPEA reached around 36.7 real per 50 kilograms as of October
20, 2014, down about 0.05% from around 36.72 real per 50 kilograms recorded on October 13, 2014.In terms of
USD per ton, the index reached around $299 per ton on October 20, 2014, down about 3% from around $307
per ton recorded on October 13, 2014.
Tags: Brazil paddy rice index, Brazil paddy rice index cepea


Indonesian New President Aims at Self-Sufficiency
in Rice and Other Food Staples in Four Years
Oct 21, 2014

Indonesia's new President, who took over on Monday, is aiming at achieving
self-sufficiency in basic food items such as rice, corn and sugar with the next
four years, according to Reuters.He called on all the farmers to work hard to
increase the production of the country's agricultural products and aim at
reaching self-sufficiency in basic food staples such as rice, sugar and corn with
the next three to four years. "This is not an easy target but I'm confident with
hard work we can achieve our proclaimed target in three to four years," he said
in a televised teleconference with farmers, doctors, teachers and students on
Monday.Though the outgoing President had introduced self-sufficiency targets
for several food items in 2009 following food price hikes, most of them have
been left unfulfilled due to corruption and other scandals at various levels of
value chain.The Central Statistics Agency (BPS) has estimated Indonesia's
paddy rice production in 2014 to decline to around 69.8 million tons (around
44.3 million tons, basis milled), down about 2% from an estimated 71.28 million tons (around 45.3 million tons,
basis milled) in the previous year. The decline in production is mainly due to an expected decline in rice acreage
by 26,530 hectares compared to last year.
USDA estimates Indonesia to produce around 36 million tons of rice, basis milled, and import around 1.4
million tons of rice in MY 2013-14 (January 2014 - December 2014), more than double an estimated 650,000
tons imported in 2013. Consumption in 2014 is expected to increase by 1% to around 38.65 million tons from
38.13 million tons in 2013.
Tags: Indonesia rice production, Indonesia self-sufficiency in rice
Italian Ag Minister Tries to Reassure Rice Farmers
amid EU Policy Framework Restrictions
Oct 21, 2014


"Our action for supporting [the] Italian rice growing sector is based on several different points, reiterated the
Italian Agriculture Minister Maurizio Martina this week as he met with the Italian rice growing sector in
Novara. The meeting was to discuss the future of Italys rice sector and the sectors request for a safeguard
clause by the EU, in order to stop zero duty rice imports from Less Developed Countries (LDCs) - particularly
Cambodia - under the Everything But Arms (EBA) agreement.
Farmers asked the Italian Ag Minister for clear answers, and he declared that the strategy for sustaining
domestic production needs improvement following a negative reply by the European Commission to an earlier
request for trade protection. But, not giving up on the idea, he said "this will be a complicated struggle, and we
will face it."
As for Italy, Martina spoke about the request for EU to enforce a more detailed labelling system on rice
packaging, so that each consumer can easily trace the origin of the box; in a country such as Italy where food
coming from national production is highly appreciated, this could increase consumption of domestic rice. The
average national rice consumption rate is still firm at 5 kgs per capita. However, its not certain if this would
help Italy in its EU export markets.
The Italian Ag Minister also mentioned new financial measures presented some days ago by the Government;
which would not only be available for the rice growing sector, but to all Italian agriculture.
Tags: italian agriculture minister, italian rice production, Everything But Arms (EBA) agreement, Less Developed
Countries (LDCs)
Oryza Afternoon Recap Chicago Rough Rice
Futures Rebound as Technicals and Outside
Markets Provide Support
Oct 21, 2014
Chicago rough rice futures for Nov delivery settled 5.5 cents per cwt (about $1 per ton) higher at $12.555 per
cwt (about $277 per ton). Rough rice futures found late session buying interest which was enough to push prices
into the black for the day and lift the market to fresh session highs. Although the bears succeeded in driving
prices below nearby technical support, noted at $12.500 per cwt (about $276 per ton) on an intraday basis, they
were unable to maintain prices at this level and they quickly recovered. Todays action is seen as a confirmation


of this level as continued nearby technical and psychological support and provides a bullish forecast for
tomorrows trade direction.
The other grains rallied today, led by sharp gains made by soy products; Soybeans closed about 2.1% higher at
$9.6425 per bushel; wheat finished about 1.1% higher at $5.1925 per bushel, and corn finished the day about
2.2% higher at $3.5600 per bushel.U.S. stocks surged on Tuesday, with the S&P 500 and the Nasdaq Composite
extending gains into a fourth day, as investors embraced earnings from corporations. Benchmark indexes held
and then added gains after a report had sales of U.S. existing homes in September increasing to a one-year high.
The Dow Jones Industrial Average was lately up 182.48 points, or 1.1%, to 16,582.15.
Pulling above its 200-day moving average of 1,906.89, the S&P 500 advanced 30.63 points, or 1.6%, to
1,934.64, with energy the best performing and consumer staples the weakest of its 10 main industry groups. The
Nasdaq jumped 82.33 points, or 1.9%, to 4,398.40. Gold is trading about 0.6% higher, crude oil is seen trading
about 0.2% lower, and the U.S. dollar is seen trading about 0.3% higher at about 1:00pm Chicago time.
Monday, there were 1,756 contracts traded, down from 2,597 contracts traded on Friday. Open interest the
number of contracts outstanding on Monday decreased by 272 contracts to 10,730.
Tags: U.S. rice prices, chicago rough rice futures, Rice futures

Global Rice Quotes

October 21st, 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 515-525
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 580-590
Brazil parboiled 5% broken 595-605
Uruguay parboiled 5% broken NQ

Long grain fragrant rice
Thailand Hommali 92% 925-935
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

India's Saline Tolerant Rice Variety 'Korgutt' Gets
Unique Germplasm Status
Oct 21, 2014


Red kernel rice variety 'korgutt' from the Indian state of Goa has been
recognized as a unique germplasm for its tolerance to salinity stress by the
National Bureau of Plant Genetic Resources (NBPGR), according to local
sources.This is the first rice variety from Goa to get national recognition and has
been added to the unique land races such as submergence-tolerant, high-yielding
and short duration rice varieties from other parts of India.The Goa branch of the
Indian Council of Agriculture Research (ICAR) had applied for registration of
'korgutt' rice variety with the NBPGR after four years of intensive research in the field. Unique salinity
tolerance properties of 'korgutt' rice was first identified by a ICAR scientist who evaluated it under natural
coastal salinity conditions at Chorao island in a farmer's field for four years. The research proved that 'korgutt'
was highly adaptable to very high saline conditions in coastal areas. The rice variety was also tested under
artificial saline conditions at the Central Rice Research Institute at Cuttack.
The research proved that the 'korgutt' rice variety is 100% tolerant to salinity and can withstand salinity up to
12dS/m (deciSiemens per meter) at seedling stage, according to the Director of ICAR, Goa. He noted that the
rice variety is currently used by few farmers in Goa and its national recognition will help to popularize it across
the country. He added that seeds of 'korgutt' will be made available to farmers shortly especially those in low-
lying and coastal saline soils.
Goa contributes to a very little percentage of overall paddy rice production in India. In 2011-12, a total of
47,237 hectares of land was allotted to paddy and the total paddy production during the year stood at around
182,945 tons (with kharif crop accounting for around 118,145 tons and rabi crop accounting for around 64,800
tons), according to the data from Ministry of Agriculture, Goa. Paddy rice production in the state increased by
about 6% in 2011-12 from around 172,489 tons produced in 2010-11.Other saline-tolerant rice varieties such as
Assgo and Muno as well as hybrid rice varieties are mostly grown in Goa.

Tags: ICAR, saline-tolerant rice variety, unique germplasm, India rice variety
Oryza U.S. Rough Rice Recap Bids Fall as Sellers
Look to Move Rice Quickly
Oct 21, 2014


The U.S. cash market was silent today as bids continue to fall while sellers who are looking to move rice
quickly are disappointed in the numbers they are seeing.
As of today, offers could still be found around $12.50-$12.75 per cwt fob farm (about $276-$281 per ton) while
bids declined to around $12.25-$12.55 per cwt (about $270-$277 per ton) for October-November however there
were no trades to report.
Tags: U.S. rice prices, U.S. paddy rice prices, Rice Prices
Oryza Overnight Recap - Chicago Rough Rice
Futures Remain Little Changed as Traders Eye
nearby Support at $12.500 per cwt
Oct 21, 2014
Chicago rough rice futures for Nov delivery are currently noted 1.5 cent per cwt (about $0.33 per ton) higher at
$12.515 per cwt (about $276 per ton) during early morning floor trading in Chicago. The other grains are seen
trading higher this morning: soybeans are currently seen about 0.8% higher, wheat is listed about 0.8% higher
and corn is noted about 0.7% Higher.
U.S. stocks rose on Tuesday, with the S&P 500 and the Nasdaq Composite extending gains into a fourth day, as
investors embraced earnings from corporations including Apple, Texas Instruments and United Technologies.
The European Central Bank is looking to purchase corporate bonds on the secondary markets, Reuters reported.
Data on Tuesday showed that China's gross domestic product (GDP) grew 7.3% year-on-year in the July-
September period, the slowest pace in nearly six years.
Still, the figure was above forecasts for a 7.2% rise. Other Chinese data showed September industrial output
increasing 8% year-on-year, beating estimates, but retail sales and fixed-asset investment both missed
expectations. The Dow Jones Industrial Average climbed 60.70 points, or 0.4%, to 16,460.37. The S&P 500
advanced 14.58 points, or 0.8%, to 1,918.59, with energy the best performing and consumer staples the weakest
of its 10 main industry groups. The Nasdaq jumped 46.73 points, or 1.1%, to 4,362.80. Gold is currently trading
about 0.6% higher, crude oil is seen trading about 1.2% higher, and the U.S. dollar is currently trading about
0.3% higher at 9:45am Chicago time.
Tags: chicago rough rice futures, U.S. rice prices, U.S. rice market


Rice as a Cash Crop?
Oct 21, 2014
For rice farmers in the exporting nations like Thailand, the tripling of world rice prices in 2008 saw rice
transform from a food crop to a cash crop. There were reports of bus drivers in Thailand giving up their jobs to
become tractor drivers on paddy farms, and orchard farmers ripping up their fruit trees and replacing them with
paddy. This rice bonanza was rather short lived however as world prices peaked and began to come back down.
Rice is usually associated as a staple food for many of the worlds poorest people so rice being seen as a cash
crop may sound rather strange. However, throughout history niche markets for rice have made rice a profitable
crop.
In the US, Arkansas is seen as the countrys rice belt, but during the colonial era in the 17th and 18th centuries
South Carolina was the rice bowl of the British colony. Huge fortunes were made by exporting rice to northern
European countries like Holland and the Scandinavian countries where the exotic staple crop was in high
demand.
The Middle Eastern rice markets have long been a lucrative source of trade for Pakistani and Indian basmati rice
farmers. The trade policy of these countries even shows how rice varieties are viewed differently. For instance,
when India banned rice exports in 2007 in order to stop domestic rice prices from rising, it still allowed basmati
rice trade to continue. Jasmine rice varieties from Southeast Asia is also a profitable cash crop for rice farmers
as some jasmine varieties fetch world prices which are almost as high as basmati prices.
East Africa is in the midst of its own rice bonanza. Rice has traditionally been seen as a luxury food in this part
of the world where maize and cassava are the main food crops. However, with the introduction of new rice
varieties suitable for growing in East African climatic zones, along with a growing demand for rice in the cities,
rice is being taken up by more and more local farmers precisely because of its high return compared to other
crops.
Adam John
Tags: cash crop, Rice Production, Rice Prices, Adam John

Philippines Third Quarter Paddy Production
Estimated at 3.01 Million Tons, Down 10.5% from
Last Year
Oct 21, 2014


The Philippines third quarter paddy rice production is estimated
at around 3.02 million tons, down about 10.5% from around 3.36
million tons last year, and about 0.5% higher than the earlier
forecast of 2.99 million tons, according to a report by the
Philippines Bureau of Statistics (PBS). The decline is mainly due
to the damage caused by the Glenda typhoon to many hectares of
paddy fields.
The PBS estimates the paddy harvest area to slightly decline to
around 774,120 hectares from last year's 774,670 hectares. But estimates yields to increase to around 3.89 tons
per hectare from last year's 3.86 tons per hectare. The PBS attributes the increase in yields to sufficient water
supply, lesser incidences of pests and diseases and more fertilizer usage.
The report shows that around 237,000 hectares of the standing paddy crop has been harvested. Of the 2.22
million hectares standing paddy crop, 27.9% were at vegetative stage, 53.4%, at reproductive stage and 18.7%
at maturing stage as of September 1, 2014.
The Philippines Depart of Agriculture (DA) has estimated the country's 2014 paddy rice production at around
19.65 million tons. The country produced around 8.379 million tons of paddy rice in January - June 2014, up
about 5% from around 7.997 million tons produced during the same period last year.
The UN's Food and Agriculture Organization (FAO) has forecasted Philippines 2014 paddy rice production at
around 18.6 million tons, down about 1% from around 18.8 million tons in 2013 due to a reduction of about 2%
in planted area following lesser than expected rains between April and May.
USDA estimates Philippines MY 2014-15 (July - June) paddy rice production at around 19.365 million tons
(around 12.2 million tons, basis milled), up about 3% from around 18.822 million tons (around 11.8 million
tons, basis milled) produced in the previous year. It estimates Philippines 2014-15 milled rice exports at around
1.6 million tons, up about 10% from last year.
Tags: Philippines paddy rice production, Philippines Bureau of Statistics (PBS)
Thailand to Sell 207,899 Tons of Rice in Auction
Next Week
Oct 21, 2014


Thailand government will sell around 207,899 tons of rice from
its stockpiles on October 28, according to Reuters.Sources at the
Commerce Ministry told reporters that the auction would take
place at the Foreign Trade Department Office after the
announcement of eligible bidders.Last week, Commerce Ministry
sources indicated that the government would put up about 80,000
tons of 5% white rice and about 120,000 tons of broken rice sale
in the upcoming auction.
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).
Tags: Thai rice auctions, Thai rice stocks, Thai rice sale
Pakistan Exports 221,715 Tons of Rice in September
2014, Up 20% m/m and Down 3% y/y
Oct 21, 2014


Pakistan exported around 221,715 tons of rice in September 2014, up about 20% from around 184,311 tons
exported in August 2014, according to provisional data from the Pakistan Bureau of Statistics (PBS). In terms
of value, Pakistan's rice export earnings increased to around $132.9 million in September 2014, up about 27%
from around $104.5 million earned in August 2014.
However, Pakistans exports in September 2014 declined both in terms of tonnage and value from their year ago
levels. In terms of tonnage, Pakistan's exports this month declined by about 3% from around 228,802 tons
exported in September 2013. In terms of value, they are down about 6% from around $140.72 million in
September 2013.
Pakistan exported around 54,663 tons of basmati rice in September 2014, up about 29% from around 42,240
tons exported in August 2014 and up about 10% from around 49,674 tons in September 2013. In terms of value,
Pakistan's basmati rice exports earned $53 million in September 2014, up about 45% from around $36.67
million earned in August 2014, and up about 3% from around $51.22 million earned in September 2013.
Pakistan exported around 167,052 tons of non-basmati rice in September 2014, up about 18% from around
142,071 tons exported in August 2014 and down about 7% from around 179,128 tons in September 2013. In
terms of value, Pakistan's non-basmati rice exports earned $79.92 million in September 2014, up about 18%
from around $67.87 million earned in August 2014, and down about 11% from around $89.51 million earned in
September 2013.
Pakistan has exported around 602,759 tons of rice, including basmati and non-basmati, in the first three months
of FY 2014-15 (July 2014 - June 2015), down about 5% from around 635,637 tons exported during the same
period in FY 2013-14. In terms of value, Pakistan's exports earned around $362.8 million in July - September
2014, down about 10% from around $404.6 million earned during the same period in 2013.
Tags: Pakistan rice exports, Pakistan Bureau of Statistics (PBS)
Vietnam Rice Sellers Increase Some of Their Quotes
Today; Other Asia Rice Quotes Unchanged
Oct 21, 2014
Vietnam rice sellers increased their quotes for 5% broken rice 25% broken rice by about $5 per ton each to
around $435 - $445 per ton and $400 - $410 per ton respectively today. Other Asia rice sellers kept their quotes
mostly unchanged today.


5% Broken Rice
Thailand 5% rice is quoted at around $420 - $430 per ton, about $15 per ton discount to Vietnam 5% rice shown
at around $435 - $445 per ton, up about $5 per ton from yesterday. India 5% rice is quoted at around $415 -
$425 per ton, about $20 per ton premium on Pakistan 5% rice quoted at around $395 - $405 per ton.
25% Broken Rice
Thailand 25% rice was last quoted at around $350 - $360 per ton, about $50 per ton discount to Vietnam 25%
rice quoted at around $400 - $410 per ton, up about $5 per ton from yesterday. India 25% rice is quoted at
around $370 - $380 per ton, about $25 per ton premium on Pakistan 25% rice quoted at around $345 - $355 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 $340 - $350 per ton, about $10 per ton premium on
Vietnam broken rice shown at around $330 - $340 per ton. 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
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