Daily Exclusive ORYZA Rice E-Newsletter

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October 20, 2015

Vol 5.Issue XV

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EC to Implement New Regulation for

Limiting Inorganic Arsenic in Rice from
January 1, 2016
Oct 19, 2015

The European Commission (EC) will implement the new regulation for limiting inorganic
arsenic in rice and other food stuffs according to local sources.The EC reportedly made a new
recommendation to modify the laws of a regulation issued by the Official Journal of European
Union (EU) on June 26, 2015. According to the regulation (2015/1006), the EU set new
permissible limits for inorganic arsenic in rice. It allowed up to 0.20 micrograms per kilogram of
non-parboiled rice (polished or white rice), up to 0.25 micrograms per kilogram of parboiled and
husked rice, up to 0.30 micrograms per kilogram of rice waffles, wafers, crackers and cakes, and
0.1 micrograms per kilogram of rice for baby food.
However, in a new regulation (2015/1381) issued on August 10, 2015, the EC extended the
previous regulation to other food items as well. Since arsenic occurs naturally in the environment
and is present in soil and ground water, it is absorbed by all plants and animals, says the EC. The
long-term association with the element are likely to cause skin lesions, cancer, developmental
toxicity, neurotoxicity, cardiovascular diseases, abnormal glucose metabolism, and diabetes, it
says.Therefore, the EC sought a scientific opinion on the risks to human health related to the
presence of arsenic in foodstuffs (incl. drinking water) from the European Food Safety Authority
(EFSA). Since the Authority requested for a more detailed specification of data about arsenic in
the EU states, the EC instructed all the states to monitor the presence of arsenic in food in the
years 2016, 2017 and 2018.
Food stuffs including cereal grains, cereal based products (including bran and germ), fruit and
vegetable juices, drinking water (including bottled water), coffee, dry tea leaves, beer, fish and
sea food, vegetables, algae products (including hijiki), milk, dairy products, food intended for
infants and young children, food for special medical purposes and food supplements will be
monitored for the presence of arsenic.

Venezuela May Import Rice from Suriname

at Relatively Low Prices
Oct 19, 2015

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Venezuela is reportedly planning to import rice from Suriname, a move that is likely to
completely end the oil-for-rice deal with Guyana according to local sources.
The Suriname President is understood to have requested the Venezuelan leader, who visited
Suriname last week, to buy their surplus rice. The Venezuelan leader also reportedly agreed to
the proposal. We have decided to deepen trade relations and will intensify the implementation
of the rice agreement, told the Venezuelan leader to reporters.The foreign ministers have an
explicit mandate to deepen trade relations and to ensure the import of rice from Suriname,
added the Suriname President.Suriname reportedly wants Venezuela to import rice under a rice
for oil deal like the one it struck with Guyana, which is likely to expire this November.
Moreover, it is also understood that Venezuela will be getting rice at a relatively cheaper price
that it used to get from Guyana. Local sources report that Suriname is agreeing to supplying rice
at nearly half the price of Guyana's.
Meanwhile Guyana is also exploring new markets for its rice as the PetroCaribe deal with
Venezuela is on the verge of closure and Venezuela has not shown any interest so far in
renewing the deal. It is also reportedly struck new contracts with Trinidad and Tobago for
importing oil.On the other hand, Venezuela's food shortages have intensified as the government
is not ready to renew the PetroCaribe deal with Guyana. Venezuelans are reportedly buying most
of their food stuffs in the black market.
Both Venezuela and Guyana have been facing border issues, which have reportedly affected the
rice-for-oil deal as well. They are understood have approached the UN to resolve the border
issues.

Thailand, India, Vietnam Rice Sellers Alter

Some of Their Quotes Today; Other Asian
Quotes Remain Unchanged
Oct 19, 2015

Thailand rice sellers lowered their quotes for 100% B, 5% broken rice varieties by about $5 per
ton each to around $365 - $375 per ton and $355 - $365 per ton respectively. They also lowered
their quotes for and glutinous rice variety by about $15 per ton to around $660 - $670 per ton.
Vietnam rice sellers increased their quotes for 5%, 15%, 25% and jasmine rice varieties by
about $10 per ton each to around $365 - $375 per ton, $355 - $365 per ton and $475 - $485 per
ton respectively. They increased their quotes for glutinous rice variety by about $5 per ton to
around $470 - $480 per ton. India rice sellers increased their quotes for 25% broken rice and
parboiled rice varieties by about $5 per ton each to around $330 - $340 per ton and $340 - $350
per ton respectively.
5% Broken Rice

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Thailand 5% rice is indicated at around $355 - $365 per ton about $10 per ton discount on
Vietnam 5% rice shown at around $365 - $375 per ton. India 5% rice is indicated at around $350
- $360 per ton, about $45 per ton premium on Pakistan 5% rice shown at around $305 - $315 per
ton.
25% Broken Rice
Thailand 25% rice is indicated at around $330 - $340 per ton, about 15% discount on Vietnam
25% rice shown at around $345- $355 per ton. India 25% rice is indicated at around $330 - $340
per ton, about $50 per ton premium on Pakistan 25% rice shown at around $280 - $290 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice is
indicated at around $340 - $350 per ton, about $65 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 $305 - $315 per ton, at par with Vietnam
100% broken rice shown at around $305 - $315 per ton. India's 100% broken rice is shown at
around $290 - $300 per ton, about $15 per ton premium on Pakistan broken sortexed rice shown
at around $275 - $285 per ton.

Philippines to Decide on Additional One

Million Tons of Rice Imports by End of
October, Says NFA Administrator
Oct 19, 2015

The government of Philippines will decide on importing additional one million tons of rice in the
first quarter of 2016 by the end of October 2015, Bloomberg quoted the National Food Authority
(NFA) Administrator as saying.The NFA official told reporters that the NFA Council will meet
end-October to discuss rice import plan. He noted that the NFA may purchase rice through
government-to-government (G2G) transaction or through private sector.The Philippines has
already secured 500,000 tons of rice imports for delivery in the first quarter of 2016.The
government is expecting this year's paddy output to decline by about 25% due to the El Nino
induced drought conditions. The effects of the El Nino are expected to last till the middle of
2016. Government officials are considering the phenomenon to be as intense as that in 1997-98,
when the farm output fell by 23% and prices increased significantly.

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It has approved for importing about 1.8 million tons rice for delivery this year. As on October
13, about 937,000 tons of rice have been received and about 600,000 tons were purchased by the
private traders under the WTO rules.

Global Rice Quotes

October 19th, 2015
Long grain white rice - high quality
Thailand 100% B grade 365-375

Vietnam 5% broken

365-375

India 5% broken

350-360

Pakistan 5% broken

305-315

Myanmar 5% broken

415-425

Cambodia 5% broken

415-425

U.S. 4% broken 490-510

Uruguay 5% broken

535-545

Argentina 5% broken

530-540

Long grain white rice - low quality

Thailand 25% broken

330-340

Vietnam 25% broken

345-355

Pakistan 25% broken

280-290

Cambodia 25% broken 400-410

India 25% broken

330-340

U.S. 15% broken

500-510

Long grain parboiled rice

Thailand parboiled 100% stxd

365-375

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Pakistan parboiled 5% broken stxd

405-415

India parboiled 5% broken stxd 340-350

U.S. parboiled 4% broken

590-610

Brazil parboiled 5% broken

545-555

Uruguay parboiled 5% broken NQ

Long grain fragrant rice

Thailand Hommali 92% 820-830

Vietnam Jasmine

475-485

India basmati 2% broken

NQ

Pakistan basmati 2% broken

NQ

Cambodia Phka Mails

830-840

305-315

Vietnam 100% broken 305-315

Brokens
Thailand A1 Super

Pakistan 100% broken stxd

Cambodia A1 Super

275-285

355-365

India 100% broken stxd 290-300

Egypt medium grain brokens

NQ

U.S. pet food

330-340

Brazil half grain NQ

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

Indian Researchers to Support Government

to Promote Use of Black Rice
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Oct 19, 2015

Researchers from the Indian Agricultural Research Institute (IARI) will help the government in
promoting the use of black rice, which is considered to be highly nutritious, according to local
sources.Black rice is mostly grown in India's North-Eastern states and is famous for its pleasant
nutty flavour. Black rice has a good demand in the U.S., Australia and European nations.
Already one of the black rice varieties called 'chakhao', grown in Manipur has good reputation in
China.The IARI scientists will reportedly suggest an action plan to the government on how to
promote black rice and other rice varieties. They noted that the plan would earn foreign exchange
as well as improve the condition of farmers in the north-east states.
The Head of the IARI's genetics division noted that that it is important to promote the unique
variety like black rice in the larger interest of farmers in different regions. "Black rice has
medicinal value. Being rich in disease-fighting antioxidants, it is anti-cancerous as well,: he said.

Indonesian Trade Minister Reiterates About

Possible Rice Imports
Oct 19, 2015

The Indonesian government is carrying on discussions with the governments of Thailand and
Vietnam over possible rice imports amid concerns of lower production due to extending drought
conditions, according to Reuters.The Trade Minister today told the House of Representatives
today the government has decided to import rice this year to ensure adequate stocks and curb any
price hikes. He assured that the government's rice import plan would not affect farmers' incomes
as the stocks won't be released into the market.The government is keen on achieving selfsufficiency in rice production this year and avoiding imports. Even last month, the Agriculture
Minister noted that the drought conditions are unlikely to impact rice production. However, the
decision to import rice has been taken after the Bulog stocks fell to around 1.7 million tons.
Last week, the Coordinating Minister for Economic Affairs told reporters that the decision would
be taken after looking at the harvests, which will continue till the end of October 2015. He also
noted that the decision would be taken after looking at the harvests, which will continue till the
end of October 2015.
Indonesian rice production is likely to be impacted by a drought-inducing El Nino phenomenon,
which is expected to be stronger than that than that experienced in the 1997-1998 period.

Oryza Overnight Recap Chicago Rough

Rice Futures Begin Week with Slight Gain as
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Market Attempts to Hold Ground Following

Last Weeks Decline
Oct 19, 2015

Chicago rough rice futures for Nov delivery are currently noted 4 cents per cwt (about $1 per
ton) higher at $12.150 per cwt (about $268 per ton) during early floor trading in Chicago. The
other grains are seen trading mixed in early action; soybeans are currently seen trading about
0.1% higher, wheat is listed about 0.1% lower and corn is currently noted 0.3% lower.U.S.
stocks traded mostly lower Monday, as investors prepare for a deluge of earnings while digesting
Chinese economic data. U.S. equities opened lower, with all major indexes falling about
0.3%.Over a fifth of S&P 500 companies are scheduled release quarterly results this week.
Overnight, China reported a third-quarter gross domestic growth figure of 6.9%, slightly above
the expected 6.8%, but also its lowest in six years.
China also reported industrial production rose 5%, below the expected 6% increase. China's
growth data took its toll on the commodities space, which saw U.S. crude futures fall more than
2% in morning trading, while Brent futures dropped about 2.5%. The energy sector in the S&P
fell more than 1%.In Europe, the pan-European Stoxx index traded about 0.1% higher, while the
German DAX rose more than 0.5%.The Dow Jones industrial average traded down 56 points, or
0.33% at 17,159. The S&P 500 traded down 6 points, or 0.31% at 2,026, with energy leading all
sectors lower. The Nasdaq fell 10 points lower, or 0.22%, at 4,875. Gold is currently trading
about 0.7% lower, crude oil is seen trading about 2% lower, and the U.S. dollar is currently
trading about 0.4% higher at 9:30am Chicago time.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Go Nowhere as Falling Grain
Prices Keep a Lid on Buying Interest
Oct 19, 2015

Chicago rough rice futures for Nov delivery settled 0.5 cents per cwt (about $0.11 per ton) lower
at $12.105 per cwt (about $267 per ton). The other grains finished lower today; Soybeans closed
about 0.8% lower at $8.9100 per bushel; wheat finished about 1.3% lower at $4.8575 per bushel,
and corn finished the day about 1% lower at $3.7300 per bushel.U.S. stocks traded in a narrow
range Monday, as investors prepare for a deluge of earnings while digesting Chinese economic
data. Over a fifth of S&P 500 companies are scheduled release quarterly results this week.
Overnight, China reported a third-quarter gross domestic growth figure of 6.9%, slightly above
the expected 6.8%, but also its lowest in six years. China also reported industrial production rose

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5%, below the expected 6% increase. China's growth data took its toll on the commodities space,
which saw U.S. crude futures fall about 2.5%, while Brent futures dropped about 3%. The energy
sector in the S&P fell more than 1.5%.Investors also looked at housing data for more clues about
the strength of the U.S. economy, with the latest NAHB/Wells Fargo Housing Market index
reading coming in at its highest in a decade.
European stocks closed mixed as the pan-European STOXX 600 rose 0.3%, while London's
FTSE 100 fell 0.4%. The German DAX closed over 0.6% higher. Asian equities ended mixed
overnight, with the Shanghai Composite falling 0.11%, while the Hang Seng closed narrowly
higher. The Dow Jones industrial average traded down 32 points, or 0.19% at 17,184. The S&P
500 traded down 5 points, or 0.29%, at 2,027, with energy leading eight sectors lower and
consumer discretionary leading advancers. The Nasdaq dipped 1 point, or 0.03% at 4,885. Gold
is trading about 0.9% lower, crude oil is seen trading about 2.3% lower, and the U.S. dollar is
seen trading about 0.4% higher about 1:00pm Chicago time.Friday, there were 1,113 contracts
traded, down from 2,122 contracts traded on Thursday. Open interest the number of contracts
outstanding on Friday increased by 183 contracts to 12,987.

Cambodia Secures 100,000 Ton Rice Export

Deal with China
Oct 19, 2015

Cambodia has reportedly signed a contract with China to export about 100,000 tons of rice from
early 2016, according to Khmer Times.The Vice-President of the Cambodia Rice Federation
(CRF) told local sources that they will export high quality white rice to China under the
agreement. He noted that the government is keen on doubling rice exports to China next year. He
noted that Cambodian rice is priced higher than other Asian rice due to which it is losing
competitiveness in the global market. The federation is creating a working team to pinpoint
problems and find solutions to make our rice more competitive, he was quoted.The Deputy
General of the General Department of Agriculture hailed the deal. Exporters have also expressed
satisfaction over the deal saying it would increase competitiveness of the Cambodian rice. They
told local sources that.
"The scale of the deal will have a positive impact throughout the entire value chain and occurs at
a time when competition is rising in the EUs market," said one of the leading exporters. He
added that "the deal demonstrates a long-term commitment from China to support Cambodia."
However, he cautioned that the deal may lead to a shortage of high-quality white rice in the
country. He therefore advised customs officials to monitor the flow of white rice across the
borders.Cambodia reportedly exported nearly 100,000 tons of rice to China in the first nine
months of this year. The South-East Asian nation has exported around 369,105 tons of milled
rice in the first nine months of 2015, up about 37% from around 269,370 tons exported during
the same period last year, according to the Secretariat of One Window Service for Rice Export
Formality.

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