11th April ,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

8/18/2019 11th April ,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

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Daily Exclusive ORYZA Rice E-Newsletter

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

April 11,2016

Vol 7,Issu


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Iraq Seeks to Buy At Least 30,000 Tons of Rice in Tenders

Apr 08, 2016

Iraq is seeking to buy at least 30,000 tons of rice in tenders from the U.S., Uruguay or Argentinafor delivery in May/June 2016, Reuters quoted European Traders

The closing date for the tender is reportedly April 12, 2016.

Brazil Exports 311,565 Tons of Rice in First Three Months of 2016, Up 19%

from Previous Year

Apr 08, 2016

Brazil exported around 311,565 tons of rice in the first three months of 2016, up about 19% fromaround 262,471 tons exported during the same period in 2015, according to data released by theRice Institute of Rio Grande do Sul (IRGA).


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In March 2016, Brazil exported around 140,814 tons of rice, up about 89% from around 74,701tons in February 2016 and slightly down from around 142,643 tons exported in March 2015.

Venezuela remained the largest importer of Brazilian rice in March 2016 with around 59,990tons, or about 43% of Brazil's total rice exports during the month. Cuba accounted for around

44,778 tons (about 32% of Brazil's total rice exports during the month); and Senegal accountedfor around 8,415 tons (about 6% of Brazil's total rice exports during the month).

U.S. (2,418 tons), Peru (614 tons), Switzerland (147 tons), Bolivia (4,125 tons), Belgium (3,073tons), Angola (1,765 tons), Holland (1,523 tons), Chile (610 tons), Saudi Arabia (1,835 tons),Gambia (735 tons), Cape Verde (1,180 tons), Costa Rica (625 tons) and others (8,981 tons)accounted for remaining 19% of the exports during the month.

Third Rice Crop May Lead to Increased Drought and Salinity in Vietnam,

Warn Experts

Apr 08, 2016

Experts have criticized the Vietnamese government's plan to expand the acreage of 2016autumn-winter rice crop, or third rice crop, in the Mekong Delta as it could lead to higherdrought and salinity in the region in the coming years, according to Vietnam Breaking News.

The Department of Cultivation, the Ministry of Agriculture and Rural Development, is planningto increase the third rice crop area in the Delta to around 900,300 hectares from around 843,140hectares last year. Planting for the third rice crop will begin in July or early August. TheDepartment is expecting the output from the crop to increase about 8% to around 4.9 million tonsfrom around 4.54 million tons last year.

Experts say that the decision would worsen drought and salinity in the coming years because theconstruction of closed dikes to retain water for the third crop is likely to severely impact thestorage capacity in the Mekong Delta during the flooding season. They say that the three naturalreservoirs on the Mekong river - the Tonle Sap Lake in Cambodia and Vietnam’s Dong ThapMuoi (the Plain of Reeds) and Long Xuyen Quadrangle - regulate water flows of the river, storewater to ease floods in the wet season and release water into the Tien and Hau rivers to helpreduce salinity in coastal areas during the dry season.

However, they say too much construction of dikes during the third rice crops in the previousyears has severely impacted water storage in the Dong Thap Muoi and Long Xuyen Quadrangle

reservoirs. As a result, more floodong is likely to hit the areas outside the dikes in the floodingseason, while drought and saltwater intrusion are likely to worsen in the dry season, they add.

Therefore, experts have suggested that relevant agencies should find ways to slove the droughtand salinity problems caused by the third crop in the previous years rather than planning toincrease the third crop acreage.


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They reiterated that around 180,000 tons of paddy of the 2015-16 winter-spring crop has beendamaged by drought and salinity.

Separately, the Director of the Rice Research Institute noted that the authorities are planning torestore the loss from the winter-spring crop by increasing the acreage of the autumn-winter crop

so as to ensure that exports are not impacted.

Oryza Weekly: Bulls Hope New Demand from Philippines Lifts Rice Prices

Apr 09, 2016

The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes,ended the week at about $384 per ton, down about $2 per ton from a week ago, down about $3 per ton from a month ago and down about $28 per ton from a year ago.

In its April 2016 Grain Market Report, the International Grains Council forecasts 2016-17 globalrice production at around 485 million tons, an increase of about 2.5% from the previous year,due to improved Asian production. The IGC forecasts 2016-17 global rice trade at around 42million tons, unchanged from last year, and it forecasts 2016-17 global rice consumption toincrease about 1% from last year. The IGC forecasts global rice ending stocks at around 93million tons in 2016-17, about 4% less than last year due to higher food use in most countries.


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Markets were risk friendly today but analysts project gloom and doom further out. Gold pricesincreased today on a weaker U.S. dollar. Crude oil prices surged, resulting in huge losses forinvestors shorting the market. U.S. stocks closed slightly higher but posted the worst weeklyloss since February. Some analysts say there are signs of pending market trouble ahead and thatthings have topped out for now: investors are the most bullish since June; emergying market debt

saw the largest weekly inflow since 2014; investors are buying junk bonds and selling safe havenassets; and earnings have declined for the third straigh quarter.

Thailand

Thailand 5% broken rice is today quoted at about $375 per ton, up about $5 per ton from a weekago, up about $10 per ton from a month ago and down about $15 per ton from a year ago.

The government has shortlisted bids from fourteen companies for about 418,000 tons of food-grade rice and bids from six companies for about 98,723 tons of industrial-grade rice in thesecond auction of this year.

The Agriculture Ministry anticipates the water crisis resulting from drought to ease over the nextfew months as water levels in the country’s dams would be sufficient until seasonal rains beginin April and May.

India

India 5% broken rice is today quoted at about $375 per ton, unchanged from a week ago, upabout $5 per ton from a month ago, and down about $5 per ton from a year ago.

A report by a private Indian research agency forecasts the revival of the country’s basmati rice

sector in the second half of FY 2016-17.

Wholesale basmati rice prices in the national capital increased Tuesday, owing to increased buying for stockpiling against restricted supplies from producing regions.

A long-range weather forecast by a private Indian climate management company predicts thatmonsoon this year may be 5-10% above normal and well-distributed across the country, aftertwo consecutive years of drought.

Drought in India's southern states is likely to impact output from the 2015-16 rabi rice crop(November - May), say experts.

Vietnam

Vietnam 5% broken rice is today quoted at about $370 per ton, down about $10 per ton from aweek ago, down about $5 per ton from a month ago and up about $5 per ton from a year ago.


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During the first three months of 2016, Vietnam exported 1.426 million tons of rice, up about58% from during the same period last year. The average rice export price so far this year isaround $405 per ton (FOB), about 7% less than the same time last year.

During the period March 15 – April 2, rice exporters shipped about 64,000 tons of rice from

Saigon port.

Experts have criticized the Vietnamese government's plan to expand the acreage of 2016autumn-winter rice crop, or third rice crop, in the Mekong Delta as it could lead to higherdrought and salinity in the region in the coming years, according to Vietnam Breaking News.

Cambodia & Myanmar

Cambodia 5% broken rice is today quoted at about $455 per ton, unchanged from a week ago,up about $40 per ton from a month ago and up about $15 per ton from a year ago. Thegovernment of Cambodia has removed the current value-added tax (VAT) of 10% on milling

machines as part of effort to support the rice millers,

Myanmar 5% broken rice is today quoted at about $420 per ton, unchanged from a week ago,down about $5 per ton from a month ago, and up about $5 per ton from a year ago.

Pakistan

Pakistan 5% broken rice is today quoted at about $350 per ton, up about $5 per ton from a weekago, up about $10 per ton from a month ago and down about $15 per ton from a year ago.

The governments of Pakistan and Iran have agreed to sign a free trade agreement which would

boost bilateral trade between the two countries.

The USDA Post forecasts Pakistan's MY 2015-16 rice exports at around 4.2 million tons, upabout 5% from around 4 million tons last year and down from the USDA's official estimates ofaround 4.6 million tons.

Central & South America

Five percent broken rice from Uruguay and Argentina is today quoted at about $430 per ton,unchanged from a week ago, down about $10 per ton from a month ago and down about $145 per ton from a year ago. The USDA Post forecasts Argentina's total rice exports in MY 2016-17

at 550,000 tons, up about 10% from around 500,000 tons last year.

Brazil exported around 311,565 tons of rice in the first three months of 2016, up about 19%from around 262,471 tons exported during the same period in 2015.

USDA Post forecasts Dominican Republic's paddy rice production to decline about 6% toaround 806,000 tons (around 540,000 tons, basis milled) in MY 2015-16 (July 2015 - July 2016)


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from around 861,000 tons (around 577,000 tons, basis milled) in the previous year due to anexpected decline in paddy rice acreage.

U.S.

U.S. 4% broken rice is today quoted at about $435 per ton, down about $10 per ton from a weekago, down about $25 per ton from a month ago and down about $50 per ton from a year ago.

Chicago rough rice futures for May delivery bounced slightly higher this week, reaching theweekly high of $9.970 per cwt (about $219.80 per ton) on Friday but failing to break the $10.000 per cwt (about $220.46 per ton) threshold this week.

The U.S. cash market was steady this week, firming up slightly later in the week on news that theU.S. may receive a portion of the Iraqi tender.

Other Markets

The European Commission, the European Parliament, and the EU member states are discussing plans to regulate the organic farming sector as demand for organic products has been increasing.

The European Commission has postponed the much-awaited legal analysis on whether new plant breeding techniques should be considered as genetically modified organisms.

The EU’s rice imports from Least Developed Countries of Asia, such as Cambodia andMyanmar, under the Everything But Arms Agreement have reached about 217,174 tons in thefirst seven months of crop year 2015-16 (September-March), about 30% more than during thesame period last year.

The USDA Post forecasts the EU MY 2015-16 milled rice production at around 2.055 milliontons, up from around 1.963 million tons and up from the USDA's official estimates of around2.005 million tons.

The government of Indonesia plans to export about 100,000 tons of rice to ten differentcountries, including Malaysia, Singapore, and Brunei Darussalam, this year in efforts to increasefarm commodity exports.

During the period September 1 – March 29, Italy exported 67,654 tons of milled rice, about 18%less than during the same period last year.

South Korea will purchase 408,700 MT of rice (milled basis) under the 2016 tariff rate quota purchasing plan, according to the USDA Post.

The government of Malaysia plans to introduce crop insurance for paddy farmers in order to protect them from risks associated with climate change such as drought, diseases, and floods.


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The government of the Philippines may import another 500,000 tons of rice this year in additionto the 750,000 tons imported during the last six months, in efforts to mitigate the impact of El Nino-induced drought on the food supply.

Chinese customs authorities have tightened inspections on cargo being sent to North Korea, to

ensure consistency in labelling and product being transported.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures

Bounce as Recent Spate of Selling Subsides; Wheat Continues to Slip as Crop

Conditions Seen Better than Expected

Apr 09, 2016

hicago rough rice futures for May delivery settled 10.5 cents were cwt (about $2 per ton) higher

at $9.850 per cwt (about $217 per ton). The other grains finished the day mostly lower; Soybeansclosed about 0.4% lower at $9.0450 per bushel; wheat finished about 1.1% lower at $4.5775 per bushel, and corn finished the day about 1% higher at $3.6150 per bushel.

U.S. stocks traded mostly higher Friday, amid a rally in oil prices, as the yen held near highs notseen against the U.S. dollar since October 2014. The major averages came well off session highsin late-morning trade as the yen temporarily reversed earlier weakness to trade stronger againstthe dollar. Oil also briefly trimmed earlier gains. The Japanese yen traded little changed fromhighs seen earlier this week, trading near 108.4 against the U.S. dollar as of 1:03 p.m. ET. Theyen recently hit fresh highs against the greenback going back to October 2014, putting pressureon stocks. Traders also noted some pressure on stocks after several downward revisions to first-

quarter GDP estimates following wholesale inventories' 0.5% decline in February, the sharpestdecline since May 2013, Reuters reported.

The Atlanta Fed's GDPNow model said the U.S. economy was on track to grow 0.1% in the firstquarter, down from the previous 0.4% estimate. WTI held gains, surging more than 5% to near$39.30 a barrel in afternoon trade, after the oil rig count fell by 8, hitting its lowest level since2009. U.S. crude oil futures are on pace for a weekly gain of more than 7.5%.European stocksclosed up about 1% or more, with bank stocks outperforming. Asian stocks were mixed, with the Nikkei 225 and Hang Seng closing about half a percent higher while the Shanghai compositedeclined about 0.8%.In afternoon trade, the Dow Jones industrial average traded up 51 points, or0.29%, to 17,593. The S&P 500 traded up 6 points, or 0.29%, to 2,047, with energy leading

seven sectors higher with consumer discretionary leading decliners. The Nasdaq compositedeclined 1 point, or 0.03%, to 4,846. Gold is seen trading about 0.4% higher, crude oil is seentrading about 5.4% higher, and the U.S. dollar is seen trading about 0.2% lower at about 1:00pmChicago time.

Thursday, there were 378 contracts traded, down up 560 contracts traded on Wednesday. Openinterest – the number of contracts outstanding – on Thursday increased by 80 contracts to13,191.


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Lack of Summer Rains May Impact Rabi Rice Output in South India, Say

Experts

Apr 08, 2016

Drought in India's southern states is likely to impact output from the 2015-16 rabi rice crop (November -May), the Economic Times quotes some experts.

Experts noted that the effect of drought has been severe in the states of Andhra Pradesh andTelangana. The Principal Scientist of Acharya N G Ranga University noted that lack of water inthe Nagarjuna Sagar dam has been hindering irrigation activities in the two states.

An owner of a private farm in Karnataka noted that sowing for rabi rice crop in the state has notat started, though the kharif rice crop was good.

Local sources say untimely rains in last November and December and the present dry conditions

in Tamil Nadu are severely affecting the rice and cotton crops.

The Secretary General of the Consortium of Indian Farmers' Association noted that only 60% ofthe total 140 million hectares of cultivated area is rain fed and the remaining depends onirrigation. He adds that the government should speed up the completion of nearly 400 incompleteirrigation projects across the country to help farmers avoid water crises in the cropping seasons.

The government of India forecasts India's 2015-16 (July - June) milled rice output to declineabout 2% to around 103.61 million tons from around 105.48 million tons in 2014-15. While itforecasts the output from the kharif rice crop to decline about 1% y/y to around 90.59 milliontons, it forecasts output from the rabi rice crop to decline about 7.5% y/y to around 13.02 million

tons.

Lack of Summer Rains May Impact Rabi Rice Output in South India, Say

Experts

Apr 08, 2016

Drought in India's southern states is likely to impact output from the 2015-16 rabi rice crop(November - May), the Economic Times quotes some experts.

Experts noted that the effect of drought has been severe in the states of Andhra Pradesh andTelangana. The Principal Scientist of Acharya N G Ranga University noted that lack of water inthe Nagarjuna Sagar dam has been hindering irrigation activities in the two states.

An owner of a private farm in Karnataka noted that sowing for rabi rice crop in the state has notat started, though the kharif rice crop was good.


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Local sources say untimely rains in last November and December and the present dry conditionsin Tamil Nadu are severely affecting the rice and cotton crops.

The Secretary General of the Consortium of Indian Farmers' Association noted that only 60% ofthe total 140 million hectares of cultivated area is rain fed and the remaining depends on

irrigation. He adds that the government should speed up the completion of nearly 400 incompleteirrigation projects across the country to help farmers avoid water crises in the cropping seasons.

The government of India forecasts India's 2015-16 (July - June) milled rice output to declineabout 2% to around 103.61 million tons from around 105.48 million tons in 2014-15. While itforecasts the output from the kharif rice crop to decline about 1% y/y to around 90.59 milliontons, it forecasts output from the rabi rice crop to decline about 7.5% y/y to around 13.02 milliontons.

Oryza U.S. Rough Rice Recap - Prices Continue to Rally ahead of Iraqi

TenderApr 09, 2016

The U.S. cash market was firmer again today with offers and bids increasing ahead of thedeadline for Iraqi tenders offers to be submitted.

Despite the U.S. likely being the most expensive origin offered on the tender some are hopefulthat the U.S. government will put pressure on the IGB to purchase U.S. rice especially given thefact that Secretary of State John Kerry was in Baghdad today.

Analysts note that without fresh demand from Iraq, Venezuela, or Colombia prices will continue

their slide lower.

USDA Post Forecasts Pakistan MY 2015-16 Rice Exports at 4.2 Million Tons;

Up 5% from Previous Year

Apr 08, 2016

The USDA Post forecasts Pakistan's MY 2015-16 rice exports at around 4.2 million tons, upabout 5% from around 4 million tons last year and down from the USDA's official estimates of

around 4.6 million tons. It forecasts exports in MY 2016-17 to remain stable at 4.2 million tons.The Post reports that though Pakistan’s rice exports are increasing gradually, much of theincrease is in non-Basmati varieties as India continues to offer stiff competition in Basmatiexports.

Based on the government figures, the Post forecasts Pakistan's MY 2015-16 milled rice production at around 6.79 million tons, down from around 6.9 million tons in the previous yearand down from USDA's official estimates of around 6.9 million tons. It forecasts production to


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increase to 6.9 million tons in MY 2016-17 due to an expected increase in the area.

The Post forecasts Pakistan's MY 2015-16 rice area at around 2.74 million hectares, down from2.85 million hectares last year and down from USDA's official estimates of 2.85 millionhectares. It, however, forecasts area to increase to 2.8 million hectares in MY 2016-17 becausesome cotton farmers are likely to shift to rice due to the losses they incurred during the last crop.

The USDA Post forecasts Pakistan's MY 2015-16 rice consumption to increase to 2.9 milliontons from last year's 2.8 million tons and further increase to 2.95 million tons in MY 2016-17.The Post reports that around 200,000 tons of rice were used for poultry and animal feed inDecember 2015 due to a decline in prices.

The Post forecasts Pakistan's MY 2015-16 rice stocks to decline to 1.1 million tons from lastyear's 1.5 million tons and further decline to 850,000 tons in MY 2016-17. It reports thatPakistan’s stock levels reached a historic high of 1.5 million metric tons in MY 2014-15 and ricemillers were concerned about the large stocks at their mills, but the stock level is graduallycoming down, as exports are increasing.

USDA Post Forecasts Argentina MY 2016-17 Rice Exports to Increase 10%

y/y to 550,000 Tons

Apr 08, 2016


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The USDA Post forecasts Argentina's total rice exports in MY 2016-17 at 550,000 tons, up about10% from around 500,000 tons last year. Exports reportedly slowed down in 2014-15 as Brazilshifted to Paraguay and Uruguay. However, local traders believe that in the last part of 2016Brazil will speed up purchases as it is expected to have a small stock primarily due to a drop in production, says the Post.

Argentina primarily exports rice to Iraq, Colombia, Brazil and Mexico.

The Post reports that there is a great uncertainty in the local market due to large stocks from2014-15 season and low exports. The elimination of export taxes (5% for rough rice and 10% formilled rice) and the strong devaluation have improved somewhat the situation, but many producers are not able to take advantage of the new policies, says the Post.

The USDA Post forecasts Argentina's MY 2016-17 (April 2016 - March 2017) paddy riceacreage and production to remain unchanged at last year's level of around 208,000 hectares and1.338 million tons respectively.

The Post forecasts Argentina's 2016-17 rice consumption to be stable at around 460,000 tons.

Government of Cambodia Removes Value Added Tax on Milling Machines


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Apr 08, 2016

The government of Cambodia has removed the current value-added tax (VAT) of 10% onmilling machines as part of effort to support the rice millers, the Phnompenh Post quoted agovernment circular.

According to the circular, the removal of VAT on the milling machines would come into effectimmediately. It also noted that the VAT removal would make rice production more price-competitive. All agricultural products have been granted an exemption from the VAT, accordingto the circular.

The government announced some measures, including the VAT removal on milling machinesand curbing rice imports from neighboring countries, on March 31, 2016 following anemergency meeting of the members of the Cambodia Rice Federation (CRF) and the involvedstakeholders with the Deputy Prime Minister.

Last week, one of the leading exporters told reporters that the decision to remove the 10% VATwill benefit local millers so that they can compete with their foreign counterparts.

India Rice Sellers Increase Some of their Quotes Today; Other Asia Rice

Quotes Unchanged

Apr 08, 2016

India rice sellers increased their quotes for 100% broken rice by about $5 per ton to around$275-$385 per ton today. Other Asia rice sellers kept their quotes unchanged.

5% Broken Rice

Thailand 5% rice is indicated at around $370 - $380 per ton, about $5 per ton premium onVietnam 5% rice shown at around $365 - $376 per ton. India 5% rice is indicated at around $370- $380 per ton, about $25 per ton premium on Pakistan 5% rice shown at around $345 - $355 perton.

25% Broken Rice

Thailand 25% rice is indicated at around $355 - $365 per ton, on par with Vietnam 25% rice

shown at around $355- $65 per ton. India 25% rice is indicated at around $335- $345 per ton,about $25 per ton premium on Pakistan 25% rice shown at around $310 - $320 per ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice isindicated at around $345 - $355 per ton, about $60 per ton discount to Pakistan parboiled ricelast shown at around $405 - $415 per ton.


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100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $330 - $340 per ton, about $10 per tondiscount to Vietnam 100% broken rice shown at around $340 - $350 per ton. India's 100% broken rice is shown at around $275 - $285 per ton, about $10 per ton discount to Pakistan

broken sortexed rice shown at around $285 - $295 per ton.

Global Rice Quotes

April 8th, 2016

Long grain white rice - high quality

Thailand 100% B grade 380-390 ↔

Vietnam 5% broken 365-375 ↔

India 5% broken 370-380 ↔

Pakistan 5% broken 345-355 ↔

Myanmar 5% broken 415-425 ↔

Cambodia 5% broken 450-460 ↔

U.S. 4% broken 430-440 ↔

Uruguay 5% broken 435-445 ↔

Argentina 5% broken 425-435 ↔

Long grain white rice - low quality

Thailand 25% broken 355-365 ↔


Pakistan 25% broken 310-320 ↔

Cambodia 25% broken 430-440 ↔

India 25% broken 335-345 ↔

U.S. 15% broken (sacked) 470-480 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 370-380 ↔

Pakistan parboiled 5% broken stxd NQ ↔


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India parboiled 5% broken stxd 345-355 ↔

U.S. parboiled 4% broken 480-490 ↔

Brazil parboiled 5% broken 490-510 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 665-675 ↔

Vietnam Jasmine 460-470 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 760-770 ↔

Brokens

Thailand A1 Super 330-340 ↔


Pakistan 100% broken stxd 285-295 ↔

Cambodia A1 Super 345-355 ↔

India 100% broken stxd 275-285 ↑

Egypt medium grain brokens NQ ↔

U.S. pet food 315-325 ↔

Brazil half grain NQ ↔

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

USDA Post Forecasts EU MY 2015-16 Milled Rice Production at 2.055 Million

Tons; Up 5% from Previous Year

Apr 08, 2016


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The USDA Post forecasts the EU MY 2015-16 milled rice production at around 2.055 milliontons, up from around 1.963 million tons and up from the USDA's official estimates of around2.005 million tons. Italy and Spain are the top rice producers in the EU.

The Post forecasts Italy's MY 2015-16 rice production to increase 7.5% y/y to around 1.5 milliontons, including 820,000 tons of Long-A, 250,000 tons of Long-B and 400,000 tons of round paddy, due to increased area and yields. The Post reports that the long grain Indica planted areais in declining due to increasing competition from rice imports from Cambodia, Myanmar,Guyana, and Surinam which enjoy duty-free market access under 'Everything But Arms' (EBA)agreements. However, this decline is likely to be offset by the increased area for the long grainJaponica variety.

The USDA Post reports that Spain's rice production has remained stable for some years but areahas been declining.

The Post forecasts the EU MY 2015-16 rice imports to decline to around 3.6% y/y to around1.65 million tons and exports to increase about 2.6% y/y to around 280,000 tons.

USDA Post Forecasts Dominican Republic's MY 2015-16 Paddy Rice

Production at 806,000 Tons, Down 6% from Previous Year

Apr 08, 2016


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USDA Post forecasts Dominican Republic's paddy rice production to decline about 6% to around806,000 tons (around 540,000 tons, basis milled) in MY 2015-16 (July 2015 - July 2016) fromaround 861,000 tons (around 577,000 tons, basis milled) in the previous year due to an expecteddecline in paddy rice acreage. The Post forecasts MY 2016-16 production to decline to 791,000tons due to reduced availability of irrigated production area and the continued high level ofstocks managed by the government.

The Post forecasts the country's paddy rice acreage at around 150,000 hectares, down about 12%from around 170,000 hectares last year. Rice is grown in two cycles in the country with 75%crop grown in the main season and 25% crop grown in the secondary season. It forecasts the paddy acreage to further decline to around 140,000 tons in MY 2016-17.

The average yield has been varying between 4 and 5 tons per hectare over the last ten years. ThePost expects no change in yields due to lack of improvements in irrigation facilities and production technologies as well as lack of development of new varieties.

The Post estimates the country's milled rice consumption to remain stable at around 560,000 tonsin MY 2015-16 and MY 2016-17.

USDA Post reports that both imports and exports by the Dominican Republic are limited as thecountry has been self-sufficient in rice production for the last several years. The Post forecaststhe country's imports in MY 2015-16 at 17,000 tons, down from last year's 19,000 tons, andfurther decline to 15,000 tons in MY 2016-17. It forecasts the country's exports in MY 2015-16at 16,000 tons, down from last year's 18,000 tons, and further decline to 12,000 tons in MY2016-17.


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Dominican Republic has placed rice in Basket V of the Dominican Republic-Central AmericaFTA (CAFTA-DR) and agreed for a tariff-reduction period of 20 years as well as establishing a99% out-of-quota tariff rate. The out-of-quota tariff rate will remain unchanged during the first10 years of the Agreement, until 2015. From 2016 to 2020 the out-of-quota tariff rate will bereduced by 8% annually, and from years 2021 to 2025 by 12% annually. The country also

negotiated a special safeguard with an additional tariff rate, which can be applied until the endof the tariff reduction period.

The Post forecasts Dominican Republic's MY 2015-16 stocks to decline to around 205,000 tons,down about 8% from last year. It expects stocks to further decline to 178,000 tons in MY 2016-17.

China Tightens Inspections of North Korea-Bound Rice Cargos

Apr 08, 2016

Chinese customs authorities have tightened inspections on cargo being sent to North Korea,reports KBS World Radio citing Radio Free Asia (RFA).

A China-based trader told reporters that the authorities have tightened inspections to curbtransport of "apple rice" to North Korea. He noted that "apple rice" is Chinese rice packed inapple boxes instead of sacks. The term is used a jargon among traders to refer to boxes whoselabels are inconsistent with the actual product inside the box.

He also noted that the authorities usually do not monitor all goods being sent to North Korea, butnow they are randomly checking items to check if the inventory matches the actual cargo. It isnow almost impossible to send "apple rice" to North Korea, he adds.

Oryza U.S. Rough Rice Recap - Prices Continue to Rally ahead of Iraqi

Tender

Apr 09, 2016

The U.S. cash market was firmer again today with offers and bids increasing ahead of thedeadline for Iraqi tenders offers to be submitted.

Despite the U.S. likely being the most expensive origin offered on the tender some are hopefulthat the U.S. government will put pressure on the IGB to purchase U.S. rice especially given the

fact that Secretary of State John Kerry was in Baghdad today.Analysts note that without freshdemand from Iraq, Venezuela, or Colombia prices will continue their slide lower.

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

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11th April ,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

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