27th may (wednesday),2015 daily exclusive oryza rice e newsletter by riceplus magazine

Daily Exclusive ORYZA Rice E-Newsletter 2015

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Daily Exclusive ORYZA Rice E-Newsletter

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

May 27 ,2015 Vol 5,Issue V

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Philippines NFA Calls Tenders for 250,000

Ton Rice Import on June 5, 2015

May 26, 2015

The Philippines National Food Authority (NFA) has called for tenders from Vietnam, Thailand

and Cambodia for the 250,000 tons import, according to Reuters. The bidding is set for June 5,

2015, according to a NFA spokesman.The NFA is seeking to import 25% broken well-milled

long-grain rice, with delivery expected between July and August, to replenish stocks during the

lean season (July - September) as well as prevent commercial rice price hikes.The NFA is

authorized to import another 250,000 tons of rice if the drought-inducing El Nino weather

condition intensifies.

Analysts say this year, the Philippines' total rice imports could cross about 2.1 million tons if the

government approves the terms of a new trade concession with the World Trade Organization



(WTO). As per the new concession, which was supposed to come into effect last year, the

Philippines can import 805,200 tons of rice under the WTO minimum access volume (MAV),

including 755,000 tons in the country-specific- quota (CSQ) and 50,000 tons in the omnibus

quota. Imports under MAV attract 35% duty and imports over and above MAV attract 50%

duty.Imports under the WTO MAV would be in addition to the likely imports 1.3 million tons of

rice under the government-to-government (G2G) contracts to maintain buffer stocks.

The Philippines already imported 500,000 tons of rice from Vietnam and Thailand this year to

curb price increases and boost buffer stocks. Last year, the South-east Asian nation imported

more than 1.8 million tons of rice (including 1.5 million tons of 2014 imports and 300,000 tons

of 2013 residual imports) to replenish rice stocks and control price hikes.Meanwhile, the

Agriculture Assistant Secretary for Field Operations has expressed concern that increased

imports could push down the farm gate paddy prices in next harvest season affecting the farmers'

incomes. Therefore he suggested the NFA to buy more rice from farmers to stabilize

prices.USDA estimates the Philippines to produce around 12.2 million tons of rice, basis milled,

in MY 2014-15 (July - June) and import around 1.6 million tons of rice in 2015. The UN Food

and Agricutlure Organization (FAO) estimates Philippines to import 1.8 million tons of rice in

2015.

Cambodia Lacks Adequate Capacity to

Supply Rice to Philippines, Say Exporters

May 26, 2015



The Philippines National Food Authority (NFA) has invited Cambodia along with Thailand and

Vietnam to participate in bidding for 250,000 tons rice tender that is scheduled for June 5 this

year. However, it is doubtful if Cambodia will take part in the tender, according to local

sources.The Philippines is seeking 25% broken well-milled long-grain rice for delivery between

July and August.

The Chairman of a well noted rice exporting company in Cambodia told local sources that the

government is presently not ready to participate in the bidding process. He stated that the country

lacks adequate capacity to mill and supply to the Philippines as its demand is huge in a short

period.He added that several issues such as lack of sufficient storage and milling facilities as well

as high production costs and transportation costs should be addressed before attempting to make

competitive bids in such tenders. In the present situation, the country would need at least two

more years to scale up its capacity.

Cambodia did not bid in the previous import tender by the Philippines earlier this year. The

Advisor to the Cambodia Rice Federation (CRF) noted that Cambodia could supply to the

Philippines if the tenders were segregated into smaller orders tonnage wise. He however noted

that shipping directly to the to the Philippines ports was still a challenge. Else they need to ship

through the Vietnam ports.Cambodia exported around 201,183 tons of rice in the first four

months of 2015, up about 67% from around 120,291 tons exported during the same period in

2014, according to data from CRF. USDA estimates Cambodia to produce around 4.7 million

tons of milled rice and export around 1.1 million tons (including official exports and unofficial

exports to Vietnam and Thailand) in MY 2014-15 (January - December 2015).

Global Rice Quotes

May 26th, 2015

Long grain white rice - high quality

Thailand 100% B grade 380-390 ↔

Vietnam 5% broken 350-360 ↔

India 5% broken 370-380 ↔

Pakistan 5% broken 405-415 ↔

Myanmar 5% broken 420-430 ↔

Cambodia 5% broken 430-440 ↔



U.S. 4% broken 465-475 ↔

Uruguay 5% broken 565-575 ↔

Argentina 5% broken 555-565 ↔

Long grain white rice - low quality

Thailand 25% broken 350-360 ↔

Vietnam 25% broken 325-335 ↓

Pakistan 25% broken 360-370 ↔

Cambodia 25% broken 410-420 ↔

India 25% broken 345-355 ↔

U.S. 15% broken 455-465 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 370-380 ↔

Pakistan parboiled 5% broken stxd 405-415 ↔

India parboiled 5% broken stxd 360-370 ↔

U.S. parboiled 4% broken 555-565 ↔

Brazil parboiled 5% broken 570-580 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 860-870 ↓

Vietnam Jasmine 470-480 ↓

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔



Cambodia Phka Mails 815-825 ↔

Brokens

Thailand A1 Super 315-325 ↔

Vietnam 100% broken 310-320 ↔

Pakistan 100% broken stxd 300-310 ↔

Cambodia A1 Super 350-360 ↔

India 100% broken stxd 275-285 ↑

Egypt medium grain brokens NQ ↔

U.S. pet food 365-375 ↔

Brazil half grain NQ ↔

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

Thailand, Vietnam Rice Sellers Lower Some

of Their Quotes; India Rice Sellers Increase

Some of Their Quotes Today

May 26, 2015

Thailand rice sellers lowered their quotes for Hommali rice by about a $5 per ton to about $860 -

$870 per ton today. Vietnam rice sellers lowered their quotes for 25% broken rice and Jasmine

rice by about $5 per ton and $10 per ton to about $325 - $335 per ton and $470 – $480 per ton,

respectively, today. India rice sellers increased their quotes for 100% broken rice by about a $5

per ton to about $275 - $285 per ton. Pakistan rice sellers kept their quotes unchanged today.

5% Broken Rice



Thailand 5% rice is indicated at around $370 - $380 per ton, about a $20 per ton premium on

Vietnam 5% rice shown at around $350 - $360 per ton.

India 5% rice is indicated at around $370 - $380 per ton, about a $35 per ton discount to Pakistan

5% rice shown at around $405 - $415 per ton.

25% Broken Rice

Thailand 25% rice is shown at around $350 - $360 per ton, about a $25 per ton premium on

Vietnam 25% rice shown at around $325- $335 per ton, down about a $5 per ton from yesterday.

India 25% rice is indicated at around $345 - $355, about a $15 per ton discount to Pakistan 25%

rice shown at around $360 - $370 per ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $370 - $380 per ton.

India parboiled rice is indicated at around $360 - $370 per ton, about a $45 per ton discount to

Pakistan parboiled rice shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, about a $5 per ton

premium on Vietnam 100% broken rice shown at around $310 - $320 per ton.

India's 100% broken rice is shown at around $275 - $285 per ton, up about a $5 per ton from

yesterday and about a $30 per ton discount to Pakistan broken sortexed rice shown at around

$305 - $315 per ton.

Oryza U.S. Rough Rice Recap - Prices

Unchanged as Wet Weather Halts Planting;

66% of the Crop in Good-to-Excellent

Condition

May 26, 2015



The U.S. cash market was unchanged today as demand remains tepid while sellers stay on the

sidelines waiting until prices improve or until they are forced to sell.Analysts contend that

the torrential wet weather that pounded the U.S. Mid-South this weekend coupled with forecasts

for more rain this week will likely prevent any additional rice acreage to be planted, leading

some to believe that the USDA’s projected acreage figure is too high.In the meantime, the

USDA estimates that as of May 24, 93% of the US rice crop had been planted which is 1%

behind this time last year and 1% ahead of the previous 5-year average. As of now, the USDA

estimates that farmers have planted 92% of their rice crop in Arkansas, 98% in California, 99%

in Louisiana, 94% in Mississippi, 78% in Missouri, and 84% in Texas.

The USDA estimates that 82% of the crop has emerged which was 4% ahead of this time last

year and 5% ahead of the previous 5-year average. As of now, the USDA estimates that 83% of

the rice crop in Arkansas has emerged compared to 75% in California, 96% in Louisiana, 82% in

Mississippi, 70% in Missouri, and 81% in Texas.The USDA estimates that 66% percent of the

crop in good to excellent condition, which was unchanged from last week and 1% behind this

time last year. As of now, the USDA estimates that 62% of the crop in Arkansas is in good to

excellent condition compared to 80% in California, 66% in Louisiana, 80% in Mississippi, 45%

in Missouri, and 52% in Texas.

Vietnam Approves National Rice

Development Plan

May 26, 2015



The Prime Minister of Vietnam has approved a national rice development plan under which the

government aims to increase competitiveness of Vietnamese rice globally and promote it as a

high-quality trademark by 2030, according to local sources.Initially, the government will frame a

strategy to develop a national brand for Vietnamese rice especially focussing on high-quality

exports to the U.S., European Union and Japan. By 2020, the government aims to promote

Vietnamese rice under the national brand to at least 20 potential export markets across the world.

It also aims to export rice labelled with the national trademark to 50 potential markets by

2030.The government is planning to get the national brand copyrighted and certified in Vietnam

and the 50 potential markets to increase the reach of its national brand globally. It is also

planning to build and protect regional rice brand names with in the country.

In order to achieve its plans, the government will first focus on developing brand name for major

rice products of the Mekong River Delta region and encourage firms to register for brand

building and protection. It will also take steps to guide quality production systems using quality

control systems and applying advanced technology.Vietnam exported about 1.555 million tons of

rice in first four months of calendar year 2015, down about 11% from about 1.758 million tons

of rice exported during same time last year, according to data from the Vietnam Food

Association (VFA). It exported 6.32 million tons of rice in 2014.USDA estimates Vietnam to

produce around 28 million tons of rice, basis milled (around 44.88 million tons, basis paddy) and

export around 6.7 million tons in 2014-15 (January 2015 - December 2015).

Indonesia Trade Minister Rules Out Rice

Imports Until July 2015

May 26, 2015

The Indonesian Trade Minister has ruled out rice imports until July this year as the rice supply

with the state logistics agency Bulog is sufficient to meet demand until then with an additional

7.1 million tons of rice expected from the ongoing harvest, according to local sources.He

however noted that the government would import rice if the supply is not sufficient to meet the

demand during the fasting month and the Idul Fitri festivities. He added that the Ministry is

calculating the quota and would issue import permits if needed.The Director General of

Domestic Trade at the Ministry told local sources that the domestic demand within the next two

months is expected to be only 5 million tons while farmers are expected to produce a total of 7.1

million tons of rice until July. She however noted that the government may decide to import if

the harvest fails for any reason.



Earlier in May, the Chief Economics Minister told reporters that a decision on imports will be

taken at the end of May or early June.The government of Indonesia is keen on increasing 2015

paddy rice production by about 4% to around 73.4 million tons (around 48.44 million tons, basis

milled) from an estimated 70.61 million tons (around 46.65 million tons, basis milled) in 2014;

and avoid imports. Indonesia imported 425,000 tons of rice from Thailand and Vietnam in 2014.

However, some analysts have cautioned the government to consider rice imports in the light of

country's rice stocks. A professor at the Bogor Institute of Agriculture (IPB) noted that the

country's rice stocks have been declining over the past three years. They declined from 7.4

million tons in 2013 to 5.5 million tons early this year.USDA estimates Indonesia to produce

around 36.3 million tons of rice, basis milled (around 57.165 million tons, basis paddy) and

import around 1.25 million tons of rice in MY 2014-15 (January 2015 - December 2015).

27th may (wednesday),2015 daily exclusive oryza rice e newsletter by riceplus magazine

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