Brunei May Increase Rice Imports from Thailand

Daily Exclusive ORYZA Rice E-Newsletter
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Daily Exclusive ORYZA RiceNewsletter
Volume 5, Issue I
March 27, 2015

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Brunei May Increase Rice Imports from
Thailand, Says Government Official
Mar 26, 2015
Brunei is likely to increase its rice imports from Thailand this year as 90% of the Southeast
Asian nation's population prefer Thai rice for its taste and healthy properties, Bangkok post
quoted Brunei's government spokesman as saying.
The official told local sources that the Thai Prime Minister who visited Brunei had signed a
Memorandum of Understanding (MoU) on agricultural cooperation with Brunei. He noted that
the MoU covered cooperation on fisheries and livestock development and the halal food
industry.
He noted that the Sultan of Brunei would shortly visit Thailand on invitation from the Thai Prime
Minister.The Southeast Asian nation imported around 30,000 tons of rice from Thailand in 2014.
Brunei produces only 2% of the annual consumption of around 40,000 tons. Brunei’s rice
production has remained at around 1,000 tons since 2002, and the country imports most of rice
required for domestic consumption.
Though the government aims to achieve a 60% self-sufficiency in rice production, the Minister
for Industry and Primary Resources recently noted that the government cannot achieve the target
due to inadequate irrigation infrastructure. However, the government is committed to invest in
irrigation infrastructure as part of efforts to boost production.The USDA estimates Brunei's
milled rice production to remain at 1,000 tons in the MY 2014-15 (January - December 2015),
while rice consumption is estimated to decline about 33% to around 41,000 tons in MY 2014-15.
USDA estimates the country to import around 40,000 tons in MY 2014-15, down about 33%
from last year's import of 60,000 tons.
Global Rice Quotes
March 27th, 2015
Long grain white rice - high quality
Thailand 100% B grade 395-405 ↔
Vietnam 5% broken 360-370 ↔
India 5% broken 375-385 ↓
Pakistan 5% broken 365-375 ↔

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Myanmar 5% broken 410-420 ↔
Cambodia 5% broken 425-435 ↔
U.S. 4% broken 480-490 ↔
Uruguay 5% broken 575-585 ↔
Argentina 5% broken 565-575 ↔
Long grain white rice - low quality
Thailand 25% broken 370-380 ↔
Vietnam 25% broken 340-350 ↔
Pakistan 25% broken 330-340 ↔
Cambodia 25% broken 410-420 ↔
India 25% broken 340-350 ↔
U.S. 15% broken 470-480 ↔
Long grain parboiled rice
Thailand parboiled 100% stxd 385-395↔
Pakistan parboiled 5% broken stxd385-395↔
India parboiled 5% broken stxd 370-380↔
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% 890-900↔
Vietnam Jasmine 460-470↔
India basmati 2% broken NQ ↔
Pakistan basmati 2% brokenNQ ↔
Cambodia Phka Mails 795-805↔
Brokens
Thailand A1 Super 320-330↔
Vietnam 100% broken 305-315↔
Pakistan 100% broken stxd 285-295↔
Cambodia A1 Super 345-355↔
India 100% broken stxd 275-285↔
Egypt medium grain brokensNQ ↔
U.S. pet food 370-380↔
Brazil half grain NQ ↔
Medium grain milled
U.S. Calrose 4% broken 865-875↔
Egypt medium grain 6%NQ ↔
All prices USD per ton, FOB vessel, oryza.com

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Government of Vietnam Urged to Frame
New Cross-border Rice Export Regulations
to Minimize Risks to Exporters
Mar 26, 2015
Rice market experts have urged the government of Vietnam to come up with new regulations to
tighten control over cross-border rice exports, specifically to China, to minimize risks to
Vietnamese rice exporters, rather than trying to completely curb them, according to local
sources.Though the MOIT had been discouraging cross-border rice exports, traders seldom pay
attention to its advises. Experts say there are multiple reasons to traders continuing with cross-
border rice exports.
First, Chinese importers prefer importing rice through borders rather than through official
channels to cut costs, according to a local trader. For instance, if they import rice through official

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channels, they need to pay an extra amount of about $160 per ton, including a quota fee of $80
per ton, VAT and import tax. That means, for Viet 5% rice, which costs $460 per ton will cost
importers about $620 per ton. Therefore the Chinese demand for cross-border rice has been
increasing. Second thing is in cross-border imports, quality checks are not so stringent like in
official imports.
Recently, Chinese government has granted rice import quotas to businesses, a move likely to
increase Vietnam's cross-border rice shipments to China.Cross-border rice exports are risky from
Vietnamese point of view. Many a time, Chinese importers pay only 205 of the consignment
value in advance and make full payment after they receive the shipment. Vietnamese traders are
not always sure of getting total payments in time. If the importers the smugglers and the Chinese
authorities seize the consignments, they may end up not paying at all. Therefore the Ministry of
Trade and Industry (MOIT) has been discouraging cross-border rice exports and has taken some
measures in the past to curb them. But none of them worked.
Experts say despite many risks to them, Vietnamese rice exporters also prefer cross-border
exports because of lesser quality checks. They noted that it may not be possible for authorities to
totally curb cross-border rice exports. They therefore suggested that the government should try to
minimize risks to Vietnamese traders by increasing control over cross-border exporters. They
said traders should be encouraged to deal directly with Chinese importers instead of dealing
through intermediaries. They should also be given requisite support to carry forward
negotiations. Experts also noted that the Vietnam Food Association (VFA) should also support
businesses engaged in cross-border trade.
In a latest development, the government is in the process of drafting a farm-produce export
development strategy, which would also include regulations pertaining to the cross-border
trade.According to the VFA, last year, while Vietnam exported about 6.3 million tons of rice,
nearly 2 million tons, or 30% of total rice exports, had been exported through borders.
India Considers New Strategy to Boost Rice
Exports to Africa
Mar 26, 2015

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India's rice exports to African destinations have been reportedly impacted by increased supplies
from Thailand and price competition with other exporting nations such as Vietnam and Pakistan.
On the other hand, India's rice exports to Nigeria, Africa's largest importer of rice, have been
affected because it is facing foreign exchange problems due to oil price decline and depreciation
of its local currency against dollar. Earlier, in August 2014, India’s rice exports to African
countries were impacted due to the spread of the Ebola Virus Disease (EVD).
The Commerce Ministry of India has decided to formulate a new and specific strategy to boost
rice exports, including basmati and non-basmati , to Africa, according to local sources. As part of
the new strategy, the Ministry is planning to send a delegation to some African countries and
hold meetings with potential rice importers. "There is a higher demand anticipated from African
countries for rice and India can tap that potential," a Commerce Ministry official was quoted as
saying.The Ministry is understood to have taken this decision as India's rice exports in February
2015 declined by about 12.36% to around $649 million compared to around $740 million in
February last year.

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While Iran, Saudi Arabia, Iraq, Kuwait and the UAE are India's major export destinations for
basmati rice, Nigeria, Benin, Bangladesh, Senegal, South Africa and Liberia are major export
destinations for non-basmati rice.
India exported around 2.86 million tons of rice (including 75,686 tons of basmati and 2.79
million tons of non-basmati) to African destinations in April 2014 - January 2015 period of FY
2014-15, compared to around 3.93 million tons (including 69,136 tons of basmati and 3.86
million tons of non-basmati) in full FY 2013-14, according to the Agricultural and Processed
Food Products Export Development Authority (APEDA).India exported around 9.57 million tons
of rice (including 2.92 million tons of basmati and 6.65 million tons of non-basmati) in the first
ten months of FY 2014-15 (April - March), up about 7% from around 8.96 million tons
(including 3.09 million tons of basmati and 5.87 million tons of non-basmati) exported during
the same period in FY 2013-14, according to APEDA data.
India Rice Sellers Lower Some of Their
Quotes Today; Other Asia Rice Quotes
Unchanged
Mar 26, 2015
India rice sellers lowered their quotes for 5% broken rice, 25% broken rice and Parboiled rice by
about $5-$15 per ton today. Other Asia rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is indicated at around $385 - $395 per ton, about a $25 per ton premium on
Vietnam 5% rice shown at around $360 - $370 per ton. India 5% rice is indicated at around $385
- $395 per ton, down about $5 per ton from yesterday and about a $20 per ton premium on
Pakistan 5% rice shown at around $365 - $375 per ton.
25% Broken Rice
Thailand 25% rice is shown at around $370 - $380 per ton, about a $30 per ton premium on
Vietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around

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$345 - $355, down about $15 per ton from yesterday and about a $15 per ton premium on
Pakistan 25% rice shown at around $330 - $340 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $385 - $395 per ton. India parboiled rice is
indicated at around $370 - $380 per ton, down about $10 per ton from yesterday and about a $15
per ton discount to Pakistan parboiled rice shown at around $385 - $395 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is indicated at around $320 - $330 per ton, about a $15 per ton
premium on Vietnam 100% broken rice shown at around $305 - $315per ton. India's 100%
broken rice is shown at around $275 - $285 per ton, about a $10 per ton discount to Pakistan
broken sortexed rice shown at around $285 - $295 per ton.
Oryza Global Weather Outlook
Mar 26, 2015
Rain is expected across the Southern Yangtze Valley, Central North China Plain, and North-
eastern and South-western China this week.
Rain is expected across northern Pakistan this week.
Light rain is expected in Bangladesh this week.
Rain is expected across northern and far eastern India this week.
In Indonesia, rain is expected in Sumatra, western and southern Malay Peninsula, Kalimantan,
East Malaysia, Java, and southern Sulawesi this week, which will slow main crop harvesting
there.
Rain is expected across northern and central Thailand this week, which will maintain moisture
for second season rice growth there.
Rain showers are expected Central and Northern Vietnam this week. However, dryness will
persist across Southern Vietnam, which will continue to stress rice growth there.
In the Philippines, rain is expected across northern Luzon this week.

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Rain is expected across west central and southern portions of the South Central Brazil this week,
and should remain active in northern portions of the Northeast Brazil as well, which will slow
harvesting there.
A few showers are expected across Northern Argentina and Uruguay this week.
In the U.S., a few showers are expected across the Coastal Bend and Delta this week this week.
Rice planting will begin in April.
Oryza Afternoon Recap - Chicago Rough
Rice Futures Recover Yesterday's Losses
while Grains Led Lower by Tumbling Wheat
Mar 26, 2015
Chicago rough rice futures for May delivery settled 15 cents per cwt (about $3 per ton) higher at
$11.110 per cwt (about $245 per ton). The other grains finished lower today, led by a huge drop
in wheat, and again despite a rally in crude prices; Soybeans closed about 0.4% lower at $9.7450
per bushel; wheat finished about 3.8% lower at $4.9925 per bushel, and corn finished the day
about 1% lower at $3.9125 per bushel.U.S. stocks traded in a narrow range on Thursday as
equities tried to break a three-day selloff and investors weighed geopolitical events in the final
few days before earnings season.
U.S. stocks attempted to hold slight gains in afternoon trade, recovering from an initial drop in
the open that sent the Dow Jones industrial average more than 100 points lower and the Nasdaq
off 1%. Oil rose as tensions intensified in the Middle East after Saudi Arabia and its Gulf Arab
allies began a military operation in Yemen. The stronger dollar and weaker global economy
weighed on last quarter's reports and analysts expect greater earnings pressure in the next
quarter. Investors also continued to eye developments in the Germanwings airplane crash in
Europe. U.S. jobless claims fell to a five-week low, pointing to a healthy and expanding labor
market. The U.S. services sector expanded in March at its fastest pace since September, an
industry report showed on Thursday.
The Dow Jones industrial average traded flat near 17,7720. The S&P 500 traded up 0.42 points,
or 0.02%, at 2,061, with telecommunications leading four sectors higher and consumer
discretionary the greatest laggard. The Nasdaq Composite traded down 1 point, or 0.02%, to
4,875. Gold is trading about 0.4% higher, crude oil is seen trading about 4.2% higher, and the
U.S. dollar is seen trading about 0.4% higher at about 2:00pm Chicago time.Wednesday, there

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were 724 contracts traded, up from 705 contracts traded on Tuesday. Open interest – the number
of contracts outstanding – on Wednesday increased by 271 contracts to 8,976.
Oryza Overnight Recap – Chicago Rough
Rice Futures Little Changed Overnight as
Weaker Grains Conflict with Firmer Crude
Mar 26, 2015
Chicago rough rice futures for May delivery are currently seen 2.5 cents per cwt (about $1 per
ton) higher at $10.985 per cwt (about $242 per ton) ahead of early floor trading in Chicago. The
other grains are seen trading mostly lower: soybeans are currently seen about 0.3% lower, wheat
is listed about 0.3% higher and corn is currently noted about 0.1% higher.U.S. stock index
futures indicated a sharply lower open on Thursday, with Dow futures tumbling 130 points after
stocks plunged to close over 1% lower Wednesday.
The move lower weighed on European stocks in early trade Thursday, which posted heavy
losses. All major bourses in Europe were trading over 1% lower. The Dow Jones Industrial
Average extended losses Wednesday to close down about 290 points, as all the major indices
declined, giving back gains from the rally following last week's Fed announcement. The U.S.
dollar continued to edge lower, with the euro at $1.10. Other weighing factors included weak
durable goods data and tensions in the Middle East, which caused oil prices to surge on Thursday
after Saudi Arabia and its Gulf Arab allies began a military operation in Yemen.
U.S. jobless claims fell to a five-week low, pointing to a healthy and expanding labor market.
Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 282,000
for the week ended March 21, the Labor Department said on Thursday. That was the lowest level
since mid-February. Thursday looks set to be a relatively quiet day on the data front, with the
Kansas City Fed's manufacturing index for March due for release. It is expected to hold steady at
a reading of 1—the lowest since 2013. Federal Reserve policymaker Dennis Lockhart said on
Thursday that economic growth in the first quarter looks very soft and that a rate hike should
come in the middle of the year or later. Gold is currently trading about 1.1% higher, crude oil is
seen trading about 3.2% higher, and the U.S. dollar is currently trading about 0.6% lower at
8:30am Chicago time.

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Oryza U.S. Rough Rice Recap - Offers Firm
with Futures as Bids Hold Mostly Steady
Mar 26, 2015
The U.S. cash market was slightly firmer today however bids have not kept pace with the
increase in seller prices ideas and a result there were little to no trades to report.Analysts contend
that both buyers and sellers will likely remain on the sidelines until after the USDA’s
Prospective Planting Report due out on the morning of Tuesday, March 31.
In the meantime, the USDA reported that cumulative net export sales for the week ending on
March 19, totaled 108,400 tons, which was 42% higher than last week and 34% higher than the
prior 4-week average.Increases were reported for the following destinations including: 63,300
tons to Colombia, 14,700 tons to Haiti, 13,100 tons to Japan, 5,700 tons to Honduras, and 5,500
tons to South Korea.
U.S. rice exporters shipped 81,400 tons, which was 95% higher than last week and 47% higher
than the prior 4-week average. The primary destinations included: 27,700 tons to Mexico, 24,600
tons to Haiti, 17,300 tons to Colombia, 4,900 tons to Honduras, and 2,300 tons to Canada.

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Brunei May Increase Rice Imports from Thailand

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