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Daily Exclusive ORYZA Rice

Newsletter

Volume 5, Issue I

May 8, 2015

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Genome Editing is a Promising New Frontier

for Rice Disease Resistance

May 07, 2015

Genome editing may allow scientists to improve rice crops, according to an article on

phys.org. Principal investigator Cornell University researcher Adam Bogdanove and Jan Leach,

professor of Bioagricultural Sciences and Pest Management at Colorado State University are

exploring the ability for disease resistance and tolerance to acidic soils to be edited out of rice

genomes. Professor Leach says that 15% of rice paddy yield is lost to disease.

"We have the ability to open the genome like a book, go to a certain chapter and a specific word

[ referring to a DNA sequence] and change the word or correct its spelling," phys.org quotes

Bogdanove.The quick results of genome editing are contrasted with the slow process of rice

plant breeding. Genome editing is also not the same as genetic engineering, which is less precise;

Bogdanove compares genetic engineering to “inserting a particular sentence somewhere at

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random into the book,” quotes phys.org.The project‟s public website can be found at

RiceDiversity.org.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Continue to Chart Historic Low

Prices as Technical Bearishness is

Compounded by Falling Grain Prices

May 07, 2015

Chicago rough rice futures for Jul delivery settled 10 cents per cwt (about $2 per ton) lower at

$9.695 per cwt (about $214 per ton). The outlook for Rough rice futures remains bleak as prices

continue to make double digit moves lower and continues to see aggressive selling in afternoon

trading. Technical weakness was compounded by market wide bearishness. The other grains

turned negative today, pressured by a steep decline in crude prices as well as strength in the US

dollar; Soybeans closed about 0.8% lower at $9.7500 per bushel; wheat finished about 1.4%

lower at $4.7275 per bushel, and corn finished the day about 2.4% lower at $3.5775 per bushel.

U.S. stocks traded higher on Thursday as investors awaited Friday's jobs report and yields eased

slightly from recent highs. Thursday's gains marked a rebound from the last two days' selloffs.

Initial claims for state unemployment benefits rose 3,000 to a seasonally adjusted 265,000 for the

week ended May 2, the Labor Department said on Thursday. Claims for the prior week were

unrevised at 262,000, which was the lowest reading since April 2000. To be sure, Wednesday's

ADP report showed the U.S. private sector added 169,000 jobs, the fewest since January 2014.

The report is not necessarily correlated with the U.S. Bureau of Labor Statistics' data due Friday.

Investors also kept on eye on crude, which eased off its highs for 2015 but remained about half

the peak levels of last summer.

The Dow Jones Industrial Average traded up 113 points, or 0.63%, at 17,956. The S&P 500

traded up 12 points, or 0.55%, at 2,092, with information technology leading nine sectors higher

energy the only decliner. The Nasdaq traded up 35 points, or 0.72%, at 4,955. Gold is trading

about 0.7% lower, crude oil is seen trading about 3.2% lower, and the U.S. dollar is seen trading

about 0.7% higher at about 1:00pm Chicago time.Wednesday, there were 1,022 contracts traded,

up from 853 contracts traded on Tuesday. Open interest – the number of contracts outstanding –

on Wednesday increased by 14 contracts to 10,841.

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France Hungry for Authentic North

American Wild Rice

May 07, 2015

Wild rice is North America‟s only native grain. In fact, the grain is not technically rice but an

annual water grass seed, zizania. In the U.S., wild rice is both hand harvested and

cultivated.Harvesting wild rice for thousands of years, the Ojibwe Native Americans call wild

rice „manomin,‟ or good berry; it grows in rivers and lakes and is harvested by canoe and flail

sticks.Since the 1950s‟s wild rice has been cultivated and the U.S. state of Minnesota is the

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world‟s largest producer of cultivated wild rice, with an annual output of 5-10 million pounds.

Wild rice is also grown in the U.S. state of Wisconsin and Canada.

Wild rice and other Native American goods are growing in popularity in France. However, a

Native American News and Arts site, thecirclenews.org, reports that products being marketed as

Native American in France are sometimes fakes, including black Indonesian rice being marketed

as North American wild rice. Efforts are underway to properly market wild rice in France, but

have been dampened by the tribal electoral cycle, according to the site.

Global Rice Quotes

May 8th, 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 375-385 ↔

Myanmar 5% broken 415-425 ↔

Cambodia 5% broken 430-440 ↔

U.S. 4% broken 480-490 ↔

Uruguay 5% broken 565-575 ↔

Argentina 5% broken 555-565 ↔

Long grain white rice - low quality

Thailand 25% broken 350-360 ↔

Vietnam 25% broken 330-340 ↔

Pakistan 25% broken 330-340 ↔

Cambodia 25% broken 410-420 ↔

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India 25% broken 345-355 ↔

U.S. 15% broken 470-480 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 375-385 ↔

Pakistan parboiled 5% broken stxd 390-400 ↔

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% 875-885 ↓

Vietnam Jasmine 480-490 ↔

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 285-295 ↔

Cambodia A1 Super 350-360 ↔

India 100% broken stxd 270-280 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 370-380 ↔

Brazil half grain NQ ↔

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

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Following Main Crop Harvest, Indonesia

Will Review Rice Imports in June or July

May 07, 2015

Indonesia has rice stockpiles for six to seven months but may consider rice imports, depending

domestic production, Bloomberg quotes the coordinating minister for economic affairs as

saying. Indonesia‟s main rice crop is harvested March through June and a decision regarding rice

imports is expected to be determined by June or July.

Oryza Overnight Recap – Chicago Rough

Rice Futures Continue Lower Overnight on

Lack of Technical and Fundamental Support

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May 07, 2015

Chicago rough rice futures for Jul delivery are currently seen paused 4.5 cents per cwt (about $1

per ton) lower at $9.750 per cwt (about $215 per ton) ahead of floor trading in Chicago. The

other grains are seen trading lower: soybeans are currently seen about 0.2% lower, wheat is listed

about 0.2% lower and corn is currently noted 1.6% lower.U.S. stock index futures indicated a

lower open on Thursday coming off lows as investors eyed U.S. data and higher bond yields.

The number of Americans filing new claims for unemployment benefits rose marginally last

week, staying near a 15-year low in a sign that the labor market continues to strengthen despite

moderate economic growth. Initial claims for state unemployment benefits rose 3,000 to a

seasonally adjusted 265,000 for the week ended May 2, the Labor Department said on Thursday.

Claims for the prior week were unrevised at 262,000, which was the lowest reading since April

2000. Earlier, equity futures pointed to a sharply lower open, with Dow futures dropping 100

points. European equities tumbled in morning trade, as government bond yields continued to

spike. The yield on 10-year German Bunds soared 20 basis points to trade close to 0.8%, and is

on track for its biggest weekly jump in over a decade, according to Reuters. It most recently

traded around 0.66%.In other European news, Greece's economic nightmare continues, after

European lenders dashed any hopes of an aid-for-reform deal next Monday when the Eurogroup

of euro zone finance ministers meets. Gold is currently trading about 0.7% lower, crude oil is

seen trading about 0.9% lower, and the U.S. dollar is currently trading about 0.5% higher at

8:30am Chicago time.

FAO Projects Second Year of Declining

World Rice Stocks-to-Use Ratio

May 07, 2015

In its May 7 2015 World Food Situation report, the Food and Agriculture Organization (FAO) of

the United Nations (UN) is projecting that in 2015/16 higher rice utilization will surpass higher

production and lead to lower ending stocks and a lower stocks-to-use ratio worldwide, especially

in rice exporting nations.

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Oryza Global Weather Outlook

May 07, 2015

Rain is expected across Central and Eastern South China, the Southern Yangtze Valley, and the

Northern North China Plain this week.

Rain is expected across Bangladesh this week.

Rain showers are expected across Southern and Eastern India this week.

Rain is expected in some parts of Northern and Central Pakistan this week.

In Indonesia, rain is expected across Sumatra, Malay Peninsula, Kalimantan, southern East

Malaysia, and Sulawesi this week, which will slow rice harvesting there.

Rain showers are expected in Eastern Thailand this week.

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Rain is expected across Vietnam this week, which will favour main season rice as planting there.

In the Philippines, rain is expected across Central and North-eastern Luzon this week. Typhoon

'Noul' may bring some heavy rains and high winds in Northern Luzon.

Rain is expected across Central and Northern portions of the Center-South Brazil and North-

western portions of the Northeast Brazil this week.

A few light showers are expected across Northern Argentina this week.

Rain is expected across the U.S. this week.

Oryza April 2015 Rice Market Review

May 07, 2015

The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes,

ended the month of April at $408 per ton, down $5 per ton from a month ago and down $42 per

ton from a year ago.According to FAO, global rice production expected to reach at about 500

million tons in 2015/16, up about 1.2% from last year, mainly on expectations of a recovery in

India, Indonesia, Philippines, Sri Lanka and Thailand. Global rice trade also expected to reach at

about 42 million tons in 2015/16, up about 2% from last year due to larger import expectations

from Bangladesh, Indonesia, Philippines, Sri Lanka, Cote d‟Ivoire and Nigeria.

Global rice ending stock is expected to decline about 8% to about 168 million tons in 2015/16.As

of April, global rice crop conditions are mixed. In India rice crop conditions is favorable for

second rice crop. In China, conditions are also favorable. Meanwhile, in Thailand conditions are

poor for the dry season rice. Harvest has begun and production is expected to be significantly

less than last year, mainly due to insufficient water for cultivation that resulted in reduced

planted area and poor yield as well as due to pest damage and cold weather. In Vietnam, overall

conditions are favorable. In the U.S., planting is underway and conditions are favorable. In

Indonesia, conditions for the wet season rice remain good due to favorable sunlight and

sufficient water availability.

In Brazil, harvest is almost complete. Even though planted area was reduced, production is

expected to be similar to last year owing to increased yields. In the Philippines, harvest has

concluded this month for the dry season rice and conditions are slightly poor due to intense heat

and insufficient water. In Argentina, harvest is almost complete and conditions are favorable.In

Asia, white rice and parboiled rice prices were mostly down slightly in April. Aside from sales

through diplomatic channels, buying interest from key importers in Asia and Africa remained

thin, while the Thai government‟s suspension of state auctions of stockpiled rice added to

uncertainty. In the U.S. and Brazil rice prices remain stable, while offers in South America eased

fractionally on prospects for comfortable supplies and fx movements.

Thailand

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Thailand 5% broken rice ended the month of April at about $385 per ton, down about 1% per ton

from a month ago, and up about 3% per ton from a year ago.

The Thai Rice Exporters Association (TREA) has estimated Thailand's rice exports to decline

about 22-27% to about 8-8.5 million tons due to falling global rice export prices and stiff

competition with Vietnam, India and Pakistan. Separately, according to the Thai Commerce

Minister, Thailand is targeting to export about 10 million tons of rice in 2015. In the beginning

of the year, Thailand hoped to export 11 million tons of rice this year after exporting a record

10.97 million tons in 2014. However, due to stiff competition with Vietnam, India and Pakistan

as well as falling prices and demand, Thailand has been experiencing a decline in exports in the

last couple of months.

Thailand's Office of Agricultural Economics (OAE) has estimated the country's paddy rice

output for 2014-15 at about 32.6 million tons (about 21.5 million tons, basis milled), down about

11% from about 36.77 million tons (about 24.2 million tons, basis milled) last year, according to

a notice on its website. The Thai government had discouraged rice farmers from planting for off-

season crop due to drought and water shortages in reservoirs. The government is also planning to

reduce acreage by about 4.44 million hectares (or about 39% of the total rice area of about 11.34

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million hectares) under an agricultural zoning system to grow other cash crops, such as

sugarcane, in 3-4 years.

The Thai cabinet has approved a 460 million baht (about $14 million) rice protection program

for the 2015 production season, according to local sources. The Finance Minister told local

sources that the Ministry is expecting about 1.5 million rice farmers to participate in the program

compared to about 800,000 farmers last year. He also noted that the Ministry is planning to issue

10 and 20 year bond notes worth 300 billion baht (about $9.2 billion) and the funds received

from the bond issuance would be used to repay the debt obligations of the rice pledging scheme

and other government programs.

A panel of Thailand's Supreme Court Judges has decided to accept the case filed by the Office of

the Attorney-General (OAG) against the former Commerce Minister and 20 other individuals for

their alleged corruption in government-to-government (G2G) rice deals with two Chinese

companies, according to local sources. The hearing in the impeachment case against the former

Commerce Minister, former Deputy Commerce Minister and former Director-General of the

Department of Foreign Trade also began in late April, for their alleged corruption in

government-to-government (G2G) rice deals with two Chinese companies.

Vietnam Vietnam 5% broken rice ended the month of April at about $360 per ton, down about 3% per ton

from a month ago and down about 8% per ton from a year ago.

Vietnam exported about 1.217 million tons of rice in January 1 - April 23, 2015, down about

31% from about 1.76 million tons of rice exported in first four months of 2014, according to data

from the Vietnam Food Association (VFA). Meanwhile, the FAO has forecasted Vietnam's 2015

rice exports to remain at last year's below-average level of 6.5 million tons. Separately, Vietnam

rice exporters have expressed concern that Vietnam rice exports have slowed down despite low

prices due to a stiff competition with Thailand, India and Pakistan, report local sources.

The VFA has cut the minimum export price of the lower quality 25% broken rice exports to

about $340 per ton, down about 3% from about $350 per ton due to subdued demand for

Vietnamese rice, according to Reuters. The new floor price is effective from April 30, 2015.

Vietnam enterprises have bought about 99.4% or about 994,294 tons of targeted one-million tons

of winter-spring rice under the government-approved stock piling plan from March 1 - April 13,

2015.

The FAO forecasts Vietnam's 2015 total paddy production at a record 44.8 million tons (about

28.9 million tons, basis milled), slightly down from last year's 44.99 million tons (about 29

million tons, basis milled).

India India 5% broken rice ended the month of April at about $370 per ton, down about 3% per ton

from a month ago and down about 12% per ton from a year ago.

India average whole sale rice prices stand at Rs. 2,760 per ton (about $436 per ton) in April

2015, up slightly from Rs. 2,752 per ton (about $445 per ton) in March 2015, and down about

8% from Rs. 3,016 per ton (about $498 per ton) in April of last year.

India exported about 11.65 million tons of rice (including basmati and non-basmati) in the FY

2014-15 (April - March), up about 8% from about 10.78 million tons exported during the same

period in FY 2013-14, according to the All India Rice Exporters Association (AIREA).

Meanwhile, the FAO has forecasted India's 2015 rice exports to decline about 18% to about 9.3

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million tons from about 10.9 million tons exported in 2014 due to an estimated lower harvest in

2014.

The FAO estimates India's total paddy rice production for 2015 at about 158.2 million tons

(about 106 million tons, basis milled), up about 2% from last year's output of about 154.6 million

tons (about 103.6 million tons, basis milled). The government of India, in its second advance

estimates for major crops, has estimated India's rice production, basis milled, from rabi crop at

about 15.02 million tons and about 88.02 million tons from kharif crop, according to a statement

from the Agriculture Ministry. It estimates total rice production for 2014-15 marketing year

(October 2014 - September 2015) at about 103.04 million tons, down about 3% from an

estimated 106.65 million tons in 2013-14.

Separately, The Commission for Agricultural Costs and Prices (CACP), the body that advises the

government on the pricing policy for major farm products, has advised the government of India

to increase the minimum support price (MSP) for common grade paddy by about 3.6% or about

Rs.50 per quintal (about $8 per ton) for the 2015-16 (July - June) crop season, according to local

sources. Currently, the MSP for paddy is Rs.1,360 per quintal (about $218 per ton) for common

grade paddy and Rs. 1,400 per quintal (about $224 per ton) for Grade-A paddy.

The government of India's decision to end the levy rice procurement system from the 2015-16

kharif marketing season (October - September) is likely to negatively impact rice farmers and

consumers significantly, experts have warned. However, experts say with the absence of levy

rice procurement system, farmers have to depend on government agencies and traders and

millers to sell their paddy.

Planting for India 2014-15 rabi (secondary) rice crop (November - May) stands at about 4.066

million hectares as of May 1, 2015; down about 9% from about 4.485 million hectares planted

during the same period last year, according to preliminary data released by the Indian

Agriculture Ministry.

India‟s rice stocks in the central pool as of April 1, 2015 stood at about 23.62 million tons

(including a milled equivalent of about 10.04 million tons of paddy), down about 22% from

about 30.25 million tons recorded during the same period last year, according to data from the

Food Corporation of India (FCI).

Pakistan Pakistan 5% broken rice ended the month of April at about $380 per ton, up about 7% per ton

from a month ago and down about 10% per ton from a year ago.

The USDA has estimated Pakistan MY 2014-15 (November - October) rice exports at about 3.7

million tons, up about 16% from an estimated 3.2 million tons in MY 2013-14 and down about

5% from about USDA official estimates. Separately, Pakistan exported about 472,357 tons of

rice (including basmati and non-basmati) in March 2015, up about 33% from about 355,747 tons

exported in February 2015, according to provisional data from the Pakistan Bureau of Statistics

(PBS). Pakistan rice millers are also urged the government to announce new rice export policy

to help them avoid huge losses due to low rice prices, according to local sources.

The National Space Agency of Pakistan (SUPARCO) has estimated Pakistan FY 2014-15 (July -

June) paddy rice production to decline about 19% to about 8.437 million tons (about 5.65 million

tons, basis milled) from about 10.04 million tons (about 6.72 million tons, basis milled) produced

last year. Meanwhile, the USDA estimates Pakistan's MY 2014-15 milled rice production at

about 6.9 million tons, up about 3% from an estimated 6.7 million tons in MY 2013-14 due to an

increase in acreage. Separately, Pakistan's Federal Committee on Agriculture (FCA) has fixed

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rice production target of 7 million tons basis milled, (about 10.35 million tons, basis paddy) for

current year, from an area of about 2.8 million hectares.

South & Central America Brazil 5% broken rice ended the month of April at about $550 per ton, unchanged from a month

ago and down about 17% per ton from a year ago.

The Brazil paddy rice index maintained by CEPEA ended the month of April at about 35.66 real

per 50 kilograms (about $238.3 per ton), down about 0.6% from about 35.87 real per 50

kilograms (about $224 per ton) recorded on March 31, 2015.

Brazil‟s National Grains Supply Company (Conab) has forecasted the country's 2014-15 paddy

rice production at about 12.397 million tons (about 8.43 million tons, basis milled), up about 2%

from about 12.121 million tons (about 8.24 million tons, basis milled) in 2013-14, and up 2%

from its March forecast of about 12.151 million tons. Meanwhile, the USDA estimates MY

2014-15 milled rice production at about 8.3 million tons, unchanged from last year; and

unchanged from USDA's official estimates. Brazil has exported about 262,471 tons of rice in the

first three months of 2015, according to data released by the Rice Institute of Rio Grande do Sul

(IRGA). The USDA estimates Brazil's MY 2014-15 (April 2015 - March 2016) rice exports at

about one million tons, up about 10% from about 900,000 tons in MY 2013-14 and up 10% from

USDA's official estimates of about 900,000 tons. The U.S. agency estimates MY 2014-15 Brazil

rice imports at about 700,000 tons, unchanged from MY 2013-14 and unchanged from USDA's

official estimates of about 700,000 tons.

Brazil rice stocks declined to about 134,255 tons in March 2015, slightly down from about

135,717 tons in February 2015 and down about 76% from about 558,690 tons in March 2014,

according to the Conab.

Five percent broken rice from Uruguay and Argentina ended the month of April at about $565

per ton, down about 2% per ton from a month ago and down about 17% per ton from a year ago.

Argentina has exported about 12,762 tons of rice in January 2015, down about 75% from about

50,783 tons exported during the same period in 2014, according to data from the Ministry of

Agriculture in Argentina. Month-on-month, Argentina's rice exports increased about 9% from

about 11,700 tons exported in December 2014.

The USDA forecast Dominican Republic's paddy rice production to decline about 2% to about

776,000 tons (about 520,000 tons, basis milled) in MY 2015-16 (January - December 2015) from

about 793,000 tons (about 531,000 tons, basis milled) in the previous year due to a slight decline

in paddy rice acreage. The agency estimates the country's milled rice consumption to slightly

decline to about 533,000 tons in MY 2015-16 from about 538,000 tons in the previous year due

to relatively higher prices.

The USDA estimates Venezuela rice imports in MY 2015-16 (April - March) at about 500,000

tons, unchanged from MY 2014-15. The Post reports that due to Venezuelan price controls and

exchange rate disparities, unofficial cross border trade with Colombia has been increasing.

According to the Post, Venezuela exported about 200,000 tons of rice to Colombia in MY 2013

unofficially. The Post also expects Venezuela's rice imports from the U.S. to decline due to new

and renewed agreements with Guyana and Suriname. The agency estimates Venezuela rice

consumption to increase to about 690,000 tons in MY 2015-16, slightly up from about 685,000

tons in MY 2014-15.

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The FAO estimates Ecuador 2015 paddy rice production to about 1.23 million tons (about

774,900 tons, basis milled), up about 1.17 million tons (about 737,100 tons, basis milled) from

last year due to an expected increase in plantings.

U.S. U.S. 4% broken rice ended the month of April at about $485 per ton, unchanged from a month

ago and down about 17% per ton from a year ago.

The USDA has forecasted U.S. MY 2014-15 all rice exports to increase to about 4.76 million

tons, up about 12% from about 4.24 million tons last year and slightly up from its last month's

forecasts of 4.72 million tons due to an increase in U.S. long grain exports to the Western

Hemisphere. The agency has forecasted U.S. MY 2014-15 all rice imports to increase to about

1.07 million tons, up about 3% from about 1.04 million tons last year and up 3% from its last

month's forecasts of 1.04 million tons due to an increase in imports from Thailand. The USDA

increased its estimates for U.S. MY 2014-15 all rice ending stocks by about 3% to about 1.92

million tons from its last month's estimates of about 1.86 million tons. It estimates U.S. all rice

ending stocks to increase about 29% y/y in MY 2014-15.

Separately, Rice farmers in U.S. state of California are again facing water shortages that

producers say will reduce production in 2015, after a reduction in production in 2014. California

produces about 80% of the nation's medium grain rice.

Africa Madagascar has imported about 200,000 tons of rice in the first three months of 2015 to

compensate for a likely loss of expected output from cyclones that hit the major rice producing

regions of the country since January this year, according to local sources. Meanwhile, the

country's Agriculture Minister told local sources that a series of cyclones, including tropical

storm Chedza, Cyclone Fundi and Cyclone Haliba, from the beginning of this year have damages

about 20,000 hectares of rice area in the country and the output is likely to decline by about 15-

20% compared to last year.

Farmers in Tanzania's Mbeya Irrigation Zone have achieved two times higher yields with the

Systematic Rice Intensification (SRI) farming technique, according to local sources. Farmers in

the two irrigation schemes - Mbuyuni Kimani and Magozi - of the Mbeya Irrigation Zone who

were trained in the technique told local sources that the SRI method is useful in doubling their

yields, saving water and is also economically viable. The Secretary of the Mbuyuni Kimani

irrigation scheme noted that the method was introduced in about 2,000 hectares and about 3,020

small farmers are being benefited.

An Italian rice cooperative project "Support project to National Program for Investment in

Agriculture" along with three other cooperatives trained by the Italian National Research Center

(CNR) and a group of Italian farmers have taken up a project to help and support the Senegalese

farmers to boost rice production, according to local sources. The project, which is funded by the

Italian Minister for Foreign Affairs as well as the Senegalese Institute of Research in

Agriculture, and Regional Director of Rural Development of Sedhiou, aims at training

Senegalese farmers about good farming practices and local seeding rules. It also aims at

developing about 4,000 hectares of rural land to improve rice production about the Casamance

river.

Mauritania has achieved 86% self-sufficiency in rice production in 2014, according to

Bloomberg. The North-West African nation was only 35% self-sufficient in rice production in

2009. The government has achieved an increase in rice production through a consistent increase

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in rice area since 2009. It increased paddy rice area to about 51,000 hectares from about 18,000

hectares in 2009, according to the Agriculture Minister. Mauritania produced about 202,000 tons

of rice in 2013-14.

China The FAO has forecasted China's 2015 rice imports at about 2.7 million tons, similar to last year's

above-average level. The agency estimates China‟s 2014 paddy rice production at about 207

million tons (about 145 million tons, basis milled), slightly up from about 206.4 million tons last

year (about 144.4 million tons, basis milled). The increase is attributed to a slight increase in area

planted, prompted by higher minimum purchase/support prices (MSP) and other government

support measures, including direct payments to farmers and subsidies for seed and machinery as

well as other agricultural inputs.

Meanwhile, the government of China is planning to enhance assessment of hybrid rice varieties

going further after farmers in Anhui Province suffered huge losses with "Liangyou 0293"

variety, which proved to be not resistant to a serious fungal disease rice blast, according to local

media.

Philippines The Philippines first quarter paddy rice output is likely to be below the government forecast of

about 4.59 million tons due to unfavorable weather conditions, according to the Bureau of

Agricultural Statistics (BAS). The BAS estimates the country's Q1 paddy output at about 4.47

million tons. It attributes the decline to a reduction in paddy rice acreage and a drop in yield due

to occurrence of typhoons, intense heat, and insufficient water supply, incidence of pests and

diseases and strong winds.

The Philippines procurement agency is exploring ways to import rice from different countries

such as Pakistan, Myanmar, and India in order to diversify rice import origins, dominated by

Vietnam and Thailand. The nation is one of the biggest importers of rice in the world. Last year

the Philippines imported about 1.2 million tons of rice and it is estimated to import about 1.6

million tons this year, according to USDA data.

Total rice stocks in the Philippines as of March 1, 2015 reached about 2.27 million tons, down

about 3.4% from about 2.35 million tons recorded in February 2015, and up about 27.5% from

about 1.78 million tons recorded during the same period last year. The BAS says that the

Philippines' rice stocks as of March 1, 2015 are enough to last for 67 days (household stocks are

enough for 29 days, commercial warehouses stocks are enough for 22days and stocks with NFA

are enough for 16 days).

Other Markets Italy's Ministry of Health has allowed the temporary use of three kinds of herbicides to control

weeds in rice fields during the crop year 2014-15 (September - August), according to local

sources. However, the use of these herbicides is not allowed in protected areas such as SIC

(Relevant Community Locations), and ZPS (Specially Protected Zones) as they are home to live

colonies of herons and other rare animals.

Myanmar has exported about 1.7 million tons of rice in the fiscal year 2014-15 (April - March),

up about 40% from about 1.2 million tons exported in 2013-14, according to the data from the

Ministry of Commerce. In terms of value, Myanmar earned about $645 million from 2014-15

rice exports, according to the Joint Secretary of the Myanmar Rice Association. China accounted

for more than 1.1 million tons exports from Myanmar and most of the exports were through

northern borders. Myanmar exported rice to about 64 countries in ASEAN, Europe and Africa.

Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com

17

The government is keen on increasing rice exports to about 3 million tons over the next few

years and has prioritized rice exports in its National Export Strategy.

The government of Indonesia is planning to assign a state subsidiary company to buy low

quality rice from farmers at a commercial price in order to stabilize prices. Meanwhile,

Indonesia's State-owned Enterprises Minister criticized the state logistics agency Bulog for its

inefficiency in procuring rice from the ongoing harvest, according to local sources. The Minister

urged the agency to visit all the rice producing regions and monitor the condition of paddy

harvests in those regions and support farmers. Separately, the government of Indonesia should

garner adequate land for rice cultivation to achieve self-sufficiency in rice production, a former

Bulog official said. The government is aiming to achieve self-sufficiency in rice production over

the next few years and end rice imports. It is keen on increasing 2015 paddy rice production by

about 4% to about 73.4 million tons (about 48.44 million tons, basis milled) from an estimated

70.61 million tons (about 46.65 million tons, basis milled) in 2014.

The Bangladesh Bureau of Statistics (BBS) estimates output from the 2014-15 Aman crop at

about 14 million tons, up about 1.3% from about 13 million tons last year. It estimates output

from the Aus crop at about 2.328 million tons, up about 1% from about 2.3 million tons last year.

The government is estimating the output from the 2014-15 ongoing Boro crop (January - May) at

about 19 million tons. Boro rice crop has been planted in about 4.822 million hectares this year,

according to the data from the Field Service Wing of the Department of Agricultural Extension

(DAE). Separately, the government of Bangladesh has decided to provide financial incentives of

about Tk 30.21 crore (about $3.9 million) to about 210,000 rice farmers in 48 districts to help

them increase the output from the ongoing Aus cropping season (February - August), according

to local sources.

South Korea's Minister of Agriculture, Food and Rural Affairs has clearly put forth the

government's stance to exclude rice from the Trans Pacific Partnership (TPP) deal, according to

local sources. He told local sources that the government has decided on excluding rice from the

TPP's list of tariff concessions. Meanwhile, researchers at the Korea Rural Economic Institute

has predicted that South Korea's rice production is likely to reduce by about a one million tons or

about 24% by 2050 due to the effects of global warming, according to local sources. Separately,

The government of South Korea has decided to provide the increased direct subsidies to rice

farmers from this year instead of its initial plan of providing them from 2017, according to local

sources.

The USDA estimates Australia to export about 350,000 tons of rice in 2015-16 (March 2015 -

February 2016), down about 18% from an estimated 426,000 tons exported in 2014 due to an

expected increase in production. Australia 2015-16 rice imports are estimated at about 150,000

tons, unchanged from last year. The agency has estimated Australia MY 2015-16 paddy rice

production at about 764,000 tons (about 550,000, basis milled), up about 13% from an estimated

676,000 tons (about 487,000 tons, basis milled) in MY 2014-15 due to an expected increase in

yields. Meanwhile, Australian rice growers are confident that the country's paddy rice output

would reach 700,000 tons (about 504,000 tons, basis milled) in 2015 due to favorable weather

conditions, according to local sources.

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18

The USDA has estimated Turkey's rice imports at about 300,000 tons in MY 2014-15

(September - August), down about 12% from an estimated 341,000 tons imported in the previous

year. According to data from the Turkish Grain Board (TMO), Turkey imported about 196,687

tons of rice between September 2014 and January 2015, with Russia being the top exporter with

about 87,854 tons so far. The agency estimates Turkey's milled rice production to decline about

8% to about 460,000 tons in MY 2014-15 due to a slight reduction in planting area.

The FAO estimates Timor-Leste 2014-15 rice imports to increase significantly as the country's

2014 rice imports have almost doubled to about 130,000 tons due to reduced output in 2013 and

strong domestic demand. The FAO estimates Timor-Leste's 2015 paddy production at about

94,000 tons, up about 6% from an estimated 89,000 tons in 2014 assuming normal weather

forecast.

Research and Scientific Development: The Indian Council of Agricultural Research (ICAR) is planning to develop two nutrient-rich

rice varieties - zinc-rich varieties and protein-rich varieties, according to local sources.

http://oryza.com/22346/india-plans-develop-nutrition-rich-rice-varieties

Azolla, a freshwater floating fern, that carries a nitrogen-fixing cynobacterium (BGA) Anabeana

Azollae, can be used in rice fields to increase the release of nitrogen into the soil more

effectively and thereby increase rice production by over 50%.

http://oryza.com/22374/azolla-%E2%80%98green%E2%80%99-nitrogen-can-enhance-rice-

output

The UN's Food and Agricultural Organization (FAO) has launched the Agricultural Stress Index

System (ASIS), which can be used to detect droughts much earlier and assess their impact on the

crop productivity.

http://oryza.com/22512/fao-launches-agricultural-stress-index-system-detect-droughts-ahead-

and-lessen-impact-crops

Silicon, the second most abundant element on the earth's crust after oxygen, can play an

important role in enhances the quality of rice production, say researchers.

http://oryza.com/22511/silicon-enhances-quality-rice-production-say-researchers

A recent report by the Italy-based Joint Research Center of the European Commission has

identified Precision Agriculture as a potential means to increase rice production in the EU

member states while reducing the environmental ill effects associated with various rice

production systems. The report recommends that PA can be integrated into the EU Common

Agriculture Policy 2014-2020 to achieve the desired results.

http://oryza.com/22304/precision-agriculture-models-can-supplement-eu-cap-boost-rice-yields-

while-conserving-natural

April Tenders: South Korea's state run Agro Fisheries & Food Trade Corporation issued a tender to buy about

87,000 tons of non-glutinous rice of U.S. origin in tenders for delivery between August 15, 2015

and September 30, 2015. The agency bought about 72,000 tons of non-glutinous brown rice of

the U.S. and Chinese origins. Thereafter it bought about 15,000 tons of non-glutinous brown rice

of the U.S. and Australian origins.

http://oryza.com/22327/south-korea-seeks-buy-87000-tons-non-glutinous-brown-rice-tenders

http://oryza.com/22443/south-korea-buys-72000-tons-non-glutinous-rice-us-and-china-tender

http://oryza.com/22517/south-korea-buys-15000-tons-non-glutinous-rice-us-and-australia-tender

Iraq issued a tender to buy about 30,000 tons of rice.

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19

http://oryza.com/22372/iraq-seeks-purchase-30000-tons-rice-international-tenders

Syria issued a tender to buy about 6,360 tons of rice.

http://oryza.com/22401/syria-tenders-buy-6360-tons-white-rice

http://oryza.com/22464/syria-advances-tender-date-buy-6360-tons-rice

The government of Panama is planning to hold a tender for buying about 214,000 CWT (about

9,706 tons) of rice for delivery between April 24 - June 30, 2015, according to Prensa.com.

http://oryza.com/22409/panama-tender-buying-9706-tons-rice

Oryza U.S. Rough Rice Recap - Prices Hold

as Sellers Remain Uninterested in Marketing

and Finish Planting

May 07, 2015

The U.S. cash market remained unchanged today as farmers remain busy planting before much

needed rain passes through the Mid-South, bringing plantings to a standstill.Analysts contend

that many sellers will continue to wait out this price slump as long as they can with many

crossing their fingers that new demand will show up at lower prices; however, buyers remain

Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com

20

hand-to-mouth and see little reason to change their strategy as farmers plant as much as they can

before the next storm despite burdensome stocks.In the meantime, the USDA reported that

cumulative net export sales for the week ending on April 30 totaled 62,500 tons, which was 45%

lower than last week and 9% lower than the prior 4-week average.

Increases were reported for the following destinations: 20,000 tons to South Korea, 17,000 tons

to Mexico, 16,000 tons to Honduras including 8,500 tons switched from unknown destinations,

15,400 tons to Colombia, and 12,500 tons to Libya while decreases of 28,500 tons and 6,000

tons were reported for Turkey and unknown destinations, respectively.U.S. rice exporters

shipped 78,700 tons, which was 36% higher than last week and 13% higher than the prior 4-

week average. The primary destinations included 19,600 tons to Mexico, 15,500 tons to

Colombia, 12,300 tons to Honduras, 12,200 tons Japan, and 7,100 tons to Haiti.

Thailand Rice Sellers Lower Some of Their

Quotes; Other Asia Rice Quotes Unchanged

Today

May 07, 2015

Thailand rice sellers lowered their quotes for 5% broken rice by about a $5 per ton to about $370

- $380 per ton today. Other Asia rice sellers kept their quotes mostly unchanged.

5% Broken Rice

Thailand 5% rice is indicated at around $370 - $380 per ton, down about a $5 per ton from

yesterday and 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 $5 per ton discount to Pakistan

5% rice shown at around $375 - $385 per ton.

25% Broken Rice

Thailand 25% rice is shown at around $350 - $360 per ton, about a $20 per ton premium on

Vietnam 25% rice shown at around $330- $340 per ton.

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

rice shown at around $330 - $340 per ton.

Parboiled Rice

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21

Thailand parboiled rice is indicated at around $375 - $385 per ton.

India parboiled rice is indicated at around $360 - $370 per ton, about a $30 per ton discount to

Pakistan parboiled rice shown at around $390 - $400 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 $270 - $280 per ton, about a $15 per ton discount

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