Market Report

May 25, 2011

U.S.D.A. World Market Price:
World Market Price This week Last week 1 Year Ago 2010 Loan WMP and Loan Rates
LDP
Value Factors 05/25/11 05/18/11 05/26/10 Factors ‘10 crop L/G M/G
Long Grain To be 18.31 14.79 00.00 9.91 Yield 52.78/14.31 61.03/8.69
Medium Grain issued 18.00 14.52 00.00 9.65 WMP 11.52 12.11
Short Grain May 25 18.00 14.52 00.00 9.65 Loan 6.23 6.50
Brokens 8:30am 12.96 10.18 - 7.01 Difference (5.29) (5.61)

Posting: (June Shipment)

Southern U.S. - Long Grain Abbreviation Quote Basis
U.S. #2 Long Grain, max. 4% Broken, Hard Milled #2/4% $23.00 per cwt. sacked, F.A.S. U.S. Gulf
U.S. #2 Long Grain, max. 4% Broken, Hard Milled #2/4% $23.00 per cwt, BULK, FOB Vessel US Gulf
U.S. #2 Long Grain, max. 4% Broken, Hard Milled #2/4% $23.50 per cwt. containerized FOB US Gulf
U.S. #2 Long Grain, max. 4% Broken, Hard Milled #2/4% $560.00 per mt sacked delivered Laredo TX
U.S. #2 Long Grain, max. 4% Broken, Hard Milled #2/4% $24.50 per cwt sacked delivered Miami FL
U.S. #3 Long Grain, max. 15% Broken, Hard Milled #3/15 $22.00 per cwt. sacked, F.A.S. U.S. Gulf
U.S. #3 Long Grain, max. 15% Broken, Hard Milled #3/15 $550.00 per mt sacked delivered Laredo TX
U.S. #2 Long Grain Brown, max. 4% Broken, 75% yield #2/4/75 no quote per mt bulk FOB vessel NOLA
U.S. #1 Parboiled L/G Brown, max. 4% Broken, 88% yield #1/4/88 no quote per mt bulk FOB vessel NOLA
U.S. #1 Parboiled L/G MILLED, max. 4% Broken (except 0.8% damage) #1/4 Parb no quote per mt sacked FOB vessel NOLA
U.S. #1 Parboiled L/G MILLED, max. 4% Broken #1/4 Parb $600.00 per mt bulk FOB vessel NOLA
U.S. #2 Long Grain Paddy, 55/70 yield #2 55/70 $280.00 per mt bulk F.O.B. vessel NOLA
Long Grain, max. 20% broken, Hard milled (Ghana specs) #4/20/hm $21.00 per cwt. sacked, F.A.S. U.S. Gulf
U.S. #5 L/G, max. 20% broken, WELL MILLED #5/20/wm $20.50 per cwt. sacked, F.A.S. U.S. Gulf
Southern U.S. - Medium Grain
U.S. #2 Medium Grain, max. 4% broken, Hard Milled #2/4% no quote per mt bulk FOB vessel NOLA
U.S. #2 Medium Grain Paddy, 58/69 yield #2 58/69 no quote per mt bulk FOB vessel NOLA
Southern U.S. - Package Quality
Package Quality Parboiled L/G, max. 4% broken (0.8% damage) Pkg. Parb. $28.00 per cwt. bulk F.O.B. mill
Package Quality Long Grain Milled, max. 4% broken Pkg. L/G $21.50 per cwt. bulk F.O.B. mill
Package Quality Long Grain Milled, max. 4% broken (select variety) Pkg. L/G $24.00 per cwt. bulk F.O.B. mill
Package Quality Long Grain Brown Rice, max. 4% broken Pkg. Br. $31.00 per cwt. bulk F.O.B. mill
Package Quality Medium Grain Milled, max. 4% broken Pkg. M/G $35.00 per cwt. bulk F.O.B. mill
California - Medium Grain
U.S. #1 Medium Grain, max. 4% Broken #1/4 $835.00 per mt sacked containerized FOB Mill
U.S. #1 Medium Grain, max. 4% Broken #1/4 $875.00 per mt sacked containerized Oakland
U.S. #1 Medium Grain milled rice, except max. 7% Broken (Japan Specs) #1/7% $875.00 per mt sacked in 30kg bags FOB vessel
U.S. #3 Medium Grain Brown rice, max. 8% broken (Korea Specs) #3 Brown $810.00 per mt in totes containerized Oakland
U.S. #1 Medium Grain Paddy, 58/69 yield #1 58/69 $550.00 per mt bulk ex-spout Sacramento CA
California - Package Quality
Package Rice for Industrial Use and Repackers #1/4% $37-$38 per cwt. bulk F.O.B. Mill
U.S. South Brokens:
Flour Quality brokens Flour Qlty $15.00 per cwt. bulk, F.O.B. rail
Pet Food Quality / #4 Brewers (milled) contracts M/A $13.50 per cwt. bulk, F.O.B. rail
U.S. California Brokens:
Flour Quality brokens Flour Qlty $19.00 per cwt. bulk, F.O.B. mill
Pet Food Quality / #4 Brewers contracts M/A $14.00 per cwt. bulk, F.O.B. mill
Copyright © 2011 Creed Rice. Co., Inc. All Rights reserved www.creedrice.com

May 25, 2011 - Page 1 of 4

Far East Report
SOUTHEAST ASIAN MARKETS
In Thailand, the market remains relatively quiet as prices are
slightly softer, primarily account a weakening of the Thai Baht.
Thai and Viet prices continue to be virtually at par with one
another. Supplies are plentiful as the dry season harvest is all
but complete.
100% B is quoted at $485-$490 per mt FOB Bangkok; 5% is $465-$470,
and parboil is only at a slight premium to white, account cheaper
competition out of Brazil.
Iraq has floated a new tender for 60,000 mt July arrival for
closing May 29 for reply June 6. Given today’s values combined
with a freight advantage over origins in the Western hemisphere,
Thailand is in excellent position to secure this tender. However,
Vinafood may have something to say about that.
Otherwise, on the political side of the equation, an election will soon
decide whether the existing Democratic government will stay in power or be
unseated by the rival Pheu Thai party. The current regime has been operating
under a subsidy based insurance scheme that is basically a subsidy to the
growers. The rival party has proclaimed they would impose an intervention
policy which in effect would double the price of the present paddy market.
It remains to be seen whether they would truly follow thru with this bold
proposal or whether it is simply window dressing to get the vote of the
farmers. After all, there is no export market for $800-$900 per mt rice and
imposing that kind of price locally would not only fuel inflation but put the
government further in debt...another example why politics and
commerce are like oil and water...they just don’t mix well.
In Vietnam, exports continue at a respectable pace, however
prices are softer as supplies are plentiful account the arrival of
the main season harvest. Prices are mostly sideways to slightly
softer. 5% is quoted at $465-$470 per mt FOB HCMC (same as
Thai); whilst 25% is lower than Thai at $430-$435. Exports are expected to
reach 3 MMT by the end of this month, which would be on pace
for the 6.4 MMT forecast for all of 2011.
In The Philippines, The NFA recently completed awarding
all of the 660,000 mt import licenses to private traders. As I
understand the program, these private importers (66 in all) are
allowed to bring in their quota without duty. And, they have 60
days to do so. There is an additional 187,000 mt that NFA will bring in from
locals which will be subject to 40% import duty and will be used as buffer
stocks. These two schemes are operating at almost the exact opposite of what
we have seen in the past, as I would have thought NFA would act free of tariff
and privates would be subject to same. Further, the government has stated
publicly that their intention is to import only 860,000 mt this year, well short
of the projected 1.4 MMT, and a mere 35% of what they bought during the
2010 campaign...a lot of unusual and confusing issues at stake here, if you
ask me.
In any event, Thailand and Vietnam will likely vie for this business,
as might Myanmar and Pakistan...which will not be enough business to
stimulate the global market, in my view (provided the numbers hold true)...
we shall see.
Thailand Exports
Jan. 1 - May 4, 2011: 4,088,128 mt
Jan. 1 - May 4, 2010: 2,780,167 mt
Jan. 1 - May 7, 2009: 2,902,710 mt
Thai Baht 30.10-30.15 : 1 US Dollar
INDIA AND PAKISTAN
In India, this is where we find the most intriguing news in
the region. There seem to be conflicting reports as to whether
or not Non-Basmati parboil milled rice is free of restrictions and
eligible for export. According to some local print media, it was
lifted over this past weekend. One thing is for sure, millers and exporters,
as well as growers and many political leaders have made a strong push to
get the ban lifted, at least in part. Paddy rice can now move from province
to province, in the interest of relieving pressure on godowns. Huge wheat
and rice buffer stocks (42 MMT) have been a major logistical issues for
months. Whereas local prices are quite low, the government wants to avoid
fueling inflation by totally freeing up exports and driving up local prices...I’m
not so sure that would happen as their stocks are overwhelming, and the
opportunities offshore do not emulate same. In any event, we now have the
partial lifting of the ban for some varieties, as the CRMR has
referenced dating back to the Spring of 2010.
In Pakistan, the market is relatively quiet with prices a bit
firmer...not sure that I can discern exactly why, as there is no
offshore demand to support it. Perhaps it is the border trade
with Iran that is lending strength to the market account GTC’s
payment issues and inability to get rice elsewhere for a number
of reasons. And, there is the potential for further business with
Bangladesh.
IRRI-6 5% is now quoted at $490 per mt FOB Karachi; while
25% is around $440 (higher than Viet and about the same as
Thai). Parboil super kernel 5% is $520-$525 and 15% (the type Bangladesh
buys) is more like $500-$505.

OFFSHORE QUOTES
Thailand Vietnam India Pakistan Uru. Arg. Brazil
100%B $485.00 5% $470.00 Export ban, MEP $900
5% $465.00 5% N/A 5% $490.00 $515.00 $515.00
10% $460.00 10% $460.00 10% N/A 10% no quote $505.00 $505.00
15% $455.00 15% $450.00 15% N/A 15% no quote no quote no quote
25% $445.00 25% $430.00 25% N/A 25% $440.00
Parb. 5% N/A Parb 5% $520.00 $480.00
Brokens $410.00 Brokens $410.00 Var. 1121 $1350 Parb 15%* $500.00 Brokens
Parb. 100B sorted $490.00 MEP-5% $490.00 Basmati Brokens $400.00 $385.00
Thai Hom Mali $930.00 MEP-25% $470.00 Traditional $1800 Basmati Paddy
Frag. Brokens $465.00 Pusa $1300 S. Kernal $1300.00 $290.00
All prices basis U.S. dollars per metric ton, F.O.B. vessel, corresponding home port *Bangladesh Specs.

Copyright © 2011 Creed Rice. Co., Inc. All Rights reserved www.creedrice.com

May 25, 2011 - Page 2 of 4

 CBOT Rough Rice Futures (05/23/11 Volume: 765 Open Interest: 22,392)
Contract Tuesday’s Close Net Change From Prices
Month Price Monday Last Report One Year Ago 05/25/10
‘11 Jul $15.130 UP 0.050 UP 0.740 ‘10 Jul $11.620
‘11 Sep $16.030 UP 0.100 UP 0.705 ‘10 Sep $11.750
‘11 Nov $16.335 UP 0.100 UP 0.740 ‘10 Nov $11.870
‘12 Jan $16.615 UP 0.070 UP 0.725 ‘11 Jan $12.145
‘12 Mar $16.885 UP 0.070 UP 0.705 ‘11 Mar $12.425
‘12 May $17.105 UP 0.070 UP 0.705 ‘11 May $12.710

U.S. Paddy Market Report
Texas - The market is mostly quiet. Buyers’ ideas for L/G are $5.75-
$6.75 per cwt over loan depending on variety. Unlike Arkansas,
Texas continues to suffer drought conditions which could limit the
second crop.
mostly quiet as load facilities at the river are closed and the industry
is preoccupied with flood issues. Nominal prices are $11.11 per cwt
delivered mill with offers at $11.11 FOB farm.
California - 2010 and 2011 Calrose M/G traded this past week at
$14.00 per cwt over loan.

Louisiana - Long grain bids are unchanged at $11.50 per cwt FOB
Reflective Prices (all basis per cwt FOB country, 2010 Crop)
farm for both old and new crop.
Texas Louisianna Mid-South California
Mid South - More rain! The date for filing claims on crop insurance Long grain $12.25-13.25 $11.50 $10.50b/11.11a *
is approaching in the next few days and with many fields still under
Med Grain * 14.50 new crop $17.25 $20.50
water, it is likely that growers in those areas will file for benefits
and will not plant this year. It is still too early to determine with L/G is #2 55/70, M/G is #2 58/69 (California #1)
any accuracy just how many acres that will be. The cash market is * - These areas do not have sufficient supplies of this type to quote.

U.S. Report
U.S. GULF, MERCOSUR, & FUTURES
Given the quiet nature of the market offshore, all the focus seems
to be on the flooding in the Mississippi Delta and the prognosis for
planting the balance of the crop in the mid South, which is about
18-20% of the projected acreage according to USDA’s latest crop
progress report. With any luck with the weather, and that is the
key, we anticipate the crop in Arkansas could still reach the range
of 1.1-1.2 million acres...but it needs to stop raining. Over the
weekend, there was more rain throughout America’s heartland,
not to mention numerous devastating tornadoes. And, hurricane
season is upon us. The weather is obviously what has been driving
the futures market as we witnessed 3-month highs last week.
As far as the cash market is concerned, milled prices are up ever
so slightly over the past couple of weeks in sympathy for strength
in the futures market as well as the cash paddy market account the
aforementioned weather concerns. In my view, they are overdone,
as offshore demand just does not follow the same path.
Long grain paddy barges are bid/offered at $265/285 per
mt FOB NOLA. For all practical purposes, the river is still not
navigable, as one can not go from upriver to load port. However,
parts of the upper river is moving barges in daylight hours.
#2-4% is quoted at $525-530 per mt bagged FOB or around
$500-510 basis bulk. However, aside from some limited movement
to Haiti, export demand is virtually nil.
In our report of April 20, we illustrated the somewhat ironic
situation whereby the pace of US milled rice exports were ahead of
last year account heavy sales at, and before, harvest due to very low
Copyright © 2011 Creed Rice. Co., Inc. All Rights reserved www.creedrice.com
prices. Since then, those statistics have been reversing:
April 20 milled rice exports were 14% ahead of last year.
April 27 - 13%
This week - 12%
Our production numbers for Mercosur are unchanged as
follows (basis paddy):
Brazil -- 13.4 MMT
Argentina -- 1.7 MMT
Uruguay -- 1.5 MMT
Export activity has been quite brisk with most of the mills in
the region booked for June and into July. We look for total exports
in the region to be in the 3 MMT range. Prices are steady to firm
within $5-10 of U.S. values.
CALIFORNIA, AUSTRALIA & THE “MED”
We see no substantive change in the market
here as mills continue to ship against old contracts
for Korea, Libya, and Japan, among others in the
Mediterranean.
Prices are mostly sideways with #1-4% still quoted
at $37 per cwt. bulk FOB mill or $875 CY Oakland.
Although the mills are mostly booked thru
June and into July, they will begin to take some down time
for repairs, vacation, and fumigation, in addition to
compliance with PG&E hours.
In Australia, the harvest has been completed and
the production numbers seem to be right on the
800,000 mt basis paddy.
In short, the global medium grain market appears to be
quite healthy.

May 25, 2011 - Page 3 of 4

Upcoming Tenders: USDA Export Sales Highlights
May 26 AARQ TRQ tender (May 6 - 12, 2011)
NOTICE OF OPEN TENDER
Independent bids are invited for rights to ship U.S.-origin milled rice to the European Union under
a tariff-rate quota (TRQ) granted by the EU to the United States. Bids must be submitted on May Sales
26, 2011 for the July 2011 TRQ Tranche, in which the following quantity is available:
Volume (metric tons) EU Duty Net sales of 166,100 MT were up noticeably from the previous
Semi-Milled or Milled Rice 9,680 zero week and 16 percent from the prior 4-week average. Increases were
(HTS item 1006.30) reported for:
TRQ Certificates will be awarded to the highest bidder(s). Any person or entity incorporated or
domiciled in the United States is eligible to bid. The minimum bid quantity is 18 metric tons. Per- Haiti (14,100 MT)
formance security (the lesser of $50,000 or the total value of the bid) must be submitted with each Mexico (12,400 MT)
bid. Potential bidders may obtain the required bid forms and bid instructions from: Honduras (7,300 MT)
AARQ Administrator -- Economic Consulting Services, LLC -- 2001 L Street, NW, Guatemala (4,000 MT)
Suite 1000 -- Washington, D.C. 20036 -- Tel: (202) 466-1150 Fax: (202) 785-3330 Saudi Arabia (2,100 MT)
Note: Potential bidders should consult regulations in the Official Journal of the European Union to determine the applicable tariff rate
on semi-milled/milled rice. AARQ disclaims any responsibility for advising potential bidders on applicable tariff rates. Potential bidders
Decreases were reported for:
should also consult EC regulations relating to testing for unauthorized GMOs. Dominican Republic (500 MT)
May 29 Iraq tender to buy 60,000mt for reply June 6. Exports
June 2 KCCO Inv. 2000000193 tender to buy 630mt: (420mt of
Exports of 96,900 MT were up noticeably from the previous week
#5/20% L/G Parb well milled, and 210mt of #5/20% L/G Well Milled, for and up 77 percent from the prior 4-week average. The primary
inland plant shipment July) destinations were :
Tenders Results: Mexico (25,800 MT)
Libya (21,500 MT)
May 17 KCCO Inv. 2000000147 bought 1030mt of US #5/20% long grain Haiti (14,500 MT)
milled rice at $487.20 per mt intermodal Chicago. Japan (14,200 MT)
May 24 KCCO Inv. 2000000164 amended tender to buy 8880mt: Honduras (9,900 MT)
(6500mt of #2/4% L/Grain Hard Milled in 25kg bags, 590mt of #2/7% Parboiled L/G
Source: USDA
Well Milled, and 1790mt of #5/20% L/G well milled). Results pending.
Upcoming Events:
USDA Crop Progress June 7-9, 2011 TRT Americas Conference 2011
Rice Condition - Selected States: Week Ending May 22, 2011 For more info go to: trtamericas.com
----------------------------------------------------------------------------
State : Very poor : Poor : Fair : Good : Excellent June 26-30, 2011 USA Rice Millers’ Association Convention
----------------------------------------------------------------------------
: percent
For more info go to: www.usarice.com
:
Arkansas .......:
California .....:
4
-
16
-
46
20
26
60
8
20
Please note:
Louisiana ......: 2 5 25 56 12 June 8 No Creed Rice Market Report to be issued account our atten-
Mississippi ....:
Missouri .......:
-
-
2
39
24
47
56
14
18
-
dance at the TRT Americas Conference.
Texas ..........: 1 1 56 35 7
: June 29 No Creed Rice Market Report to be issued account our atten-
6 States .......: 2 12 37 38 11 dance at the RMA convention.
:
Previous week ..: 3 14 29 48 6
Previous year ..: - 4 28 53 15
----------------------------------------------------------------------------
- Represents zero.

Rice Planted - Selected States -- Week Ending Rice Emerged - Selected States -- Week Ending
May 22, May 15, May 22, 2006- 2010 May 22, May 22, 2006- 2010
State State May 15, 2011
2010 2011 2011 Avg. 2010 2011 Avg.
Arkansas 98 63 84 90 Arkansas 94 50 63 81
California 76 60 75 76 California 14 10 15 37
Louisiana 99 99 99 98 Louisiana 96 97 98 94
Mississippi 97 85 94 93 Mississippi 85 77 84 86
Missouri 100 29 53 92 Missouri 97 21 32 80
Texas 99 95 98 98 Texas 90 80 81 94
6 States 95 69 84 90 6 States 81 53 61 77

Rice Co-Products - Spot market prices basis $ per short ton bulk, FOB mill (very limited supply in the South, except hulls)
Texas Louisiana Arkansas California
Bran: $110-$115 $105 $135 $140-$150
Mill Feed: $45 $35 $60
Ground Hulls: $5 $5 $15
Unground Hulls: $5 $5 $12 $8

Creed Rice Co. Inc.  800 Wilcrest Suite 200  Houston, Texas 77042  USA
Ph 1.713.782.3260  Fax 1.713.782.4671  www.creedrice.com  email: ricecreed@aol.com & creedinc@swbell.net
Brokers • Consultants • Market Reports • Arbitrators
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May 25, 2011 - Page 4 of 4