Daily Exclusive ORYZA Rice E-Newsletter

January 07,2016
Vol 6,Issue I

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Daily Exclusive ORYZA Rice E-Newsletter

Government of India Procures 18.966 Million

Tons of Rice as of January 1, 2016 in KMS
2015-16
Jan 07, 2016

The Food Corporation of India (FCI), the nodal agency for food grain procurement and
distribution has procured around 18.966 million tons of rice as of January 1, 2016 in KMS 201516 (October 2015 - September 2016), according to data by the Ministry of Consumer Affairs,
Food & Public Distribution.
Punjab (9.349 million tons), Haryana (2.854 million tons) and Chhattisgarh (2.311 million tons)
are the top contributors to the central pool so far in KMS 2015-16.

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Last week, Food Ministry officials told reporters that the pace of procurement was higher than
expected due to a decline in prices of common variety of rice in various markets across the
country.
The government of India is planning to procure around 30 million tons of rice in the KMS 201516.

India's New Trade Policy on Seed Quality

Paddy, Husked Rice Affecting Nepal Rice
Mills, Say Government Officials
Jan 06, 2016

Officials from Nepal's Ministry of Commerce and Ministry of Agricultural Development

expressed concern that India's new policy of shifting exports of seed quality paddy rice and
husked rice to "restricted" category from "free" category has significantly impacted the country's
rice mills, according to Kathmandu Post.
Nepali traders told reporters that due to the new policy allowed for export of only 200 tons of
paddy per month to Nepal, which is enough to fulfil only 10% of the requirement of the mills.
Our paddy output can meet the requirement of rice mills for only three months, said the VicePresident of the Birgunj Chamber of Commerce and Industry. If the restriction is not lifted, it
will affect a large number of rice mills that depend on imports from India, he added.
The official also noted that the Indian policy coupled with a likely decline in the country's paddy
production by about 10% in 2015-16 would affect the domestic rice mills severely.
In 2014-15, Nepal imported 338,512 tons of rice worth Rs.14.78 billion (around $140 million) and
345,618 tons of paddy worth Rs.9.01 billion (around $85 million), according to teh government statistics

India Winter Crop Rice Acreage Lags Behind

Last Year as of January 1, 2016
Jan 06, 2016

India 2015-16 winter/rabi rice (November - May) planting area has reached around 1.477 million
hectares as of January 1, 2016, down about 8% from around 1.605 million hectares planted
during the same period in 2014-15, according to a press release by the Ministry of Agriculture.
The decline is due to scanty rains and low moisture in some of the rice growing regions. The
Director of the Indian Meteorological Department reportedly stated that warmer easterly winds
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in December and January due to the El Nino phenomenon also impacted rabi rice sowing to
some extent. Based on the pace of sowing so far, analysts are expecting a decline in the rabi rice
crop yield.
The total rabi rice planting of all crops stood at around 54.11 million hectares as on January 1,
2015, down about 5% from last year's 56.76 million hectares.
In 2014-15, the rabi rice acreage reached around 4 million hectares, down about 9% from around 4.488
million hectares in 2013-14.

Vietnam, Pakistan Rice Sellers Lower Some

of Their Quotes Today; Thailand Rice Quotes
Mixed
Jan 06, 2016

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Thailand rice sellers increased their quotes for 5% broken rice and 25% broken rice by about $5
per ton each to about $350-360 per ton and $340-$350 per ton, respectively, and lowered their
quotes for Hommali rice by about $5 per ton to about $675-$685 per ton today. Vietnam rice
sellers lowered their quotes for 25% broken rice and 100% broken rice by about $5 per ton each
to about $340-$350 per ton and $335-$345 per ton respectively. Pakistan rice sellers lowered
their quotes for 5% broken rice by about $5 per ton to about $330-$340 per ton. India rice sellers
kept their quotes unchanged today .
5% Broken Rice
Thailand 5% rice is indicated at around $350 - $360 per ton about $5 per ton discount on
Vietnam 5% rice shown at around $355 - $365 per ton. India 5% rice is indicated at around $355
- $365 per ton, about $25 per ton premium on Pakistan 5% rice shown at around $330 - $340 per
ton.
25% Broken Rice
Thailand 25% rice is indicated at around $340 - $350 per ton, on par with Vietnam 25% rice
shown at around $340- $350 per ton. India 25% rice is indicated at around $325 - $335 per ton,
about $20 per ton premium on Pakistan 25% rice shown at around $305 - $315 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $355 - $365 per ton. India parboiled rice is
indicated at around $345 - $355 per ton, about $60 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 $315 - $325 per ton, about $20 per ton discount to
Vietnam 100% broken rice shown at around $335 - $345 per ton. India's 100% broken rice is shown at
around $265 - $275 per ton, about $20 per ton discount to Pakistan broken sortexed rice shown at
around $285 - $295 per ton

Indonesia Considers Rice Imports from India

and Pakistan Amid Concerns of Low Stocks
Jan 06, 2016

The government of Indonesia is considering to import rice from India and Pakistan amid
concerns of low stocks following prolonged drought conditions, according to Jakarta Post.
The Trade Minister told local sources that the government is still negotiating imports with India
and Pakistan. He noted that the government is in the process of preparing a Memorandum of
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Understanding (MoU) on rice imports with the government of Pakistan. The state logistics
agency Bulog is studying the technical details of Pakistan's rice stocks, he said. We are also
proposing an MoU with India, as it has for years been the worlds largest exporter of rice. They
export between US$3 billion and $4 billion worth of white rice a year, he added.
Earlier this week, the Coordinating Minister for Economic Affairs hinted at government's plans
to import 350,000 tons of rice in the first quarter of 2016 to enhance rice stocks. We have
calculated that we still have only 1.35 million tons of rice in March. Normally, we have 1.5
million tons. To fulfil the shortage of rice, were looking at signing MoUs with Myanmar and
Pakistan, he was quoted.
He however, said the MoUs were a precaution measure in anticipation of reduced rice stocks and
higher prices. He also noted that the country is likely to experience food shortages until March
2016 and the situation would improve in April when a rice harvest is expected.
Indonesia imported one million tons of rice from Thailand and Vietnam in the last quarter of
2015. About 485,000 tons of rice has arrived in the country.

Oryza CBOT Rough Rice Futures Recap Chicago Rough Rice Futures Give Back Most
of Yesterday's Gains as Oil Slides
Jan 07, 2016

Chicago rough rice futures for Mar delivery settled 9.5 cents per cwt (about $2 per ton) lower at
$11.830 per cwt (about $261 per ton). The other grains finished the day higher; Soybeans closed
about 0.9% higher at $8.6475 per bushel; wheat finished about 0.3% higher at $4.6275 per
bushel, and corn finished the day about 0.1% higher at $3.5325 per bushel.
U.S. stocks held lower in choppy trade Wednesday, pressured by continued concerns about
global economic growth, low oil prices and increased geopolitical tensions. Investors also eyed
the Fed December meeting minutes that indicated that for some members, the decision to raise
rates for the first time in nearly a decade was a "close call." Adding to those concerns
Wednesday was North Korea's claim to have successfully tested a hydrogen bomb. In other
economic news, the U.S. Markit Services PMI for December was 54.3, below November's final
print of 56.1. ISM non-manufacturing came in at 55.3, down from November's 55.9.
The Commerce Department said on Wednesday new orders for manufactured goods slipped
0.2% after a downwardly revised 1.3% gain in October, Reuters said. Earlier, the December
ADP report showed creation of 257,000 payrolls. In afternoon trade, the Dow Jones industrial
average declined 237 points, or 1.39%, to 16,920. The S&P 500 fell 24 points, or 1.23%, to
1,992, with energy leading nine sectors lower and utilities the only advancer. The Nasdaq
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composite fell 55 points, or 1.11%, to 4,836. Gold is seen trading about 1.3% higher, crude oil is
seen trading about 5.5% lower, and the U.S. dollar is seen trading about 0.1% lower at
about 1:45pm Chicago time.
Tuesday, there were 627 contracts traded, down from 986 contracts traded on Monday. Open
interest the number of contracts outstanding on Tuesday decreased by 64 contracts to 13,412.

Thailand Hopes to Export 9 Million Tons of

Rice in 2016
Jan 06, 2016

The government of Thailand is hoping to export about 9 million tons of rice in 2016 against an
estimated 10 million tons in 2015, local sources quoted the Permanent Secretary of the
Commerce Ministry.
Thailand has signed a memorandum of understanding (MoU) with China on December 3, 2015
to export one million tons. The Commerce Minister then stated that the government would
shortly sign a deal with China to export another one million tons. The December 3 deal was part
of a MoU signed in December 2014 between Thailand and China for 2 million tons of rice.
The official stated that the government is targeting to sell at least 2 million tons of rice under
government-to-government (G2G) deals, particularly with China, Indonesia and the Philippines.
She noted that to facilitate more exports, the government is considering providing soft loans for
rice exporters who are keen on exploring new markets.
The official also reportedly noted that the government is keen on selling the remaining 13
million tons of stockpiled rice by mid-2017 and focus on creating sustainable growth for rice
production and marketing.
Thailand exported around 7.81 million tons of rice in the first ten months of 2015, down about
11% from around 8.77 million tons exported during the same period last year, according to data
from Thai Rice Exporters Association (TREA).

Thailand Temporarily Suspends One Million

Ton Rice Shipment to Iran Over Saudi Crisis
Jan 06, 2016
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Daily Exclusive ORYZA Rice E-Newsletter

Thailand has temporarily suspended a one million ton rice shipment to Iran due to the on-going
diplomatic crisis between Iran and Saudi Arabia, Reuters quoted EFE News.
Sources at the Thai Foreign Trade Department told reporters that the Thai authorities will decide
over continuing sales to Iran in February after consulting with their diplomatic outposts in both
the countries.
The diplomatic crisis between Iran and Saudi Arabia arose after the government of Saudi Arabia
executed the Shiite Cleric Nimr al-Nimr last weekend leading to a violent protest by Iranian
civilians on the Saudi Embassy in Tehran as well as on the consulate in Mashhad. Following the
protests, Saudi Arabia severed its diplomatic ties with Iran.
Thailand is aiming to export 9 million tons of rice in 2016.

Global Rice Quotes

January 6th, 2016
Long grain white rice - high quality
Thailand 100% B grade 360-370

Vietnam 5% broken

355-365

India 5% broken

355-365

Pakistan 5% broken

330-340

Myanmar 5% broken

410-420

Cambodia 5% broken

425-435

U.S. 4% broken 510-520

Uruguay 5% broken

495-505

Argentina 5% broken

490-500

Long grain white rice - low quality

Thailand 25% broken

340-350

Vietnam 25% broken

340-350

Pakistan 25% broken

305-315

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Cambodia 25% broken 410-420

India 25% broken

325-335

U.S. 15% broken

485-495

Long grain parboiled rice

Thailand parboiled 100% stxd

355-365

Pakistan parboiled 5% broken stxd

405-415

India parboiled 5% broken stxd 345-355

U.S. parboiled 4% broken

500-510

Brazil parboiled 5% broken

520-530

Uruguay parboiled 5% broken NQ

Long grain fragrant rice

Thailand Hommali 92% 675-685

Vietnam Jasmine

445-455

India basmati 2% broken

NQ

Pakistan basmati 2% broken

NQ

Cambodia Phka Mails

745-755

315-325

Brokens
Thailand A1 Super

Vietnam 100% broken 335-345

Pakistan 100% broken stxd
Cambodia A1 Super

285-295

350-360

India 100% broken stxd 265-275

Egypt medium grain brokens NQ

U.S. pet food 295-305

Brazil half grain NQ

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

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