RICE WEEKLY February 26, 2021

Home , Broken rice, Carnaroli, Parboiled rice

Platts Weekly Rice Assessments ($/mt) Price Change Price Change Price Change Thailand - Long Grain White Rice Myanmar - Long Grain Parboiled Rice US - Gulf Long Grain Rice 100% Grade B LRAAC00 529.00 +7.00 Parboiled Milled 5% STX (FOB FCL) LRHDB00 530.00 0.00 US #2, 4% Broken, Hard Milled LRIAH00 630.00 0.00 5% Broken LRABB00 519.00 +7.00 (FOB Lake Charles) 10% Broken LRACA00 518.00 +7.00 India - Long Grain White Rice US #2, 4% Broken, Hard Milled LRIBH00 525.00 0.00 15% Broken LRADD00 515.00 +7.00 5% Broken LRCAB00 415.00 +10.00 (FOB Bulk NOLA) 25% Broken LRAEE00 502.00 +5.00 25% Broken LRCBE00 385.00 +5.00 US #3, 15% Broken, Hard Milled LRICD00 515.00 0.00 A1 Super 100% Broken LRAFC00 460.00 0.00 100% Broken LRCCC00 285.00 +10.00 US #5, 20% Broken, Hard Milled LRIDF00 525.00 0.00 Swarna 5% Broken LRCDB00 390.00 0.00 US #1, Parboiled Milled 4% Broken LRIEH00 570.00 +5.00 Thailand - Long Grain Parboiled Rice Sharbati 2% Broken (FOB FCL) LRCEG00 623.00 -8.00 US #2, Paddy, 55/70 Yield LRIFI00 315.00 +3.00 Parboiled Milled 100% STX LRAGC00 524.00 +10.00 Southern Flour Quality Broken (Ex-works) LRIGI00 457.00 0.00 India - Long Grain Parboiled Rice Parboiled Milled 100% LRAHC00 514.00 +10.00 Southern Pet Food Quality Broken LRIHI00 425.00 0.00 Parboiled Milled 5% STX LRAIB00 519.00 +10.00 Parboiled Milled 5% STX LRCFG00 385.00 0.00 (Ex-works) Parboiled Milled 5% LRAJB00 509.00 +10.00 India - Basmati Rice US - Californian Medium Grain Rice Thailand - Long Grain Fragrant Rice Traditional White Basmati 2% (FOB FCL) LRCGG00 1328.00 +63.00 US #1, 4% Broken (FAS FCL Oakland) LRIIH00 925.00 +15.00 Hom Mali 100% Grade B (FOB FCL) LRAKA00 805.00 -3.00 Traditional Brown Basmati 2% (FOB FCL) LRCHG00 1130.00 -40.00 US #1, Paddy, 58/69 Yield (Ex-works) LRIJI00 531.00 +11.00 Hom Mali A1 Super 100% Broken LRALA00 468.00 -2.00 Traditional Parboiled Milled Basmati 2% LRCIG00 1170.00 -20.00 (FOB FCL) (FOB FCL) South America - Long Grain White Rice Pathumthani Fragrant 100% Grade B LRAMC00 688.00 0.00 Pusa White Basmati 2% (FOB FCL) LRCJG00 877.00 -3.00 Uruguayan 5% Broken (FOB FCL) LRJAB00 633.00 -2.00 (FOB FCL) Pusa Brown Basmati 2% (FOB FCL) LRCKG00 762.00 +2.00 Uruguayan Olímar 5% Broken (FOB FCL) LRJBB00 659.00 -18.00 Pusa Parboiled Milled Basmati 2% LRCLG00 794.00 +4.00 Argentine 5% Broken (FOB FCL) LRKAB00 610.00 0.00 Thailand - Long Grain Glutinous Rice (FOB FCL) Brazilian 5% Broken (FOB FCL) LRGAB00 630.00 -10.00 White Glutinous 10% Broken (FOB FCL) LRANC00 698.00 0.00 1121 White Basmati 2% (FOB FCL) LRCMG00 904.00 -3.00 Brazilian 100% Broken (1/2 Grain Brokens) LRGBC00 370.00 +15.00 1121 Parboiled Milled Basmati 2% LRCNB00 760.00 +4.00 Paraguayan 5% Broken (FOB FCL) LRLAB00 515.00 0.00 Vietnam - Long Grain White Rice (FOB FCL) 5% Broken LRBAB00 515.00 +5.00 South America - Long Grain Parboiled Rice 10% Broken LRBBA00 510.00 +5.00 Pakistan - Long Grain White Rice Brazilian Parboiled Milled 5% Broken STX LRGCB00 630.00 -10.00 15% Broken LRBCD00 505.00 +5.00 5% Broken LRDAB00 443.00 -5.00 (FOB FCL) 25% Broken LRBDE00 490.00 0.00 10% Broken LRDBA00 440.00 -3.00 Uruguayan Parboiled Milled 5% Broken STX LRJCB00 650.00 0.00 100% Broken LRBEC00 450.00 0.00 15% Broken LRDCD00 437.00 -1.00 (FOB FCL) 25% Broken LRDDE00 398.00 -5.00 Vietnam - Long Grain Fragrant Rice 100% Broken LRDFG00 358.00 -5.00 Egypt - White Rice Fragrant 5% Broken LRBFA00 520.00 -10.00 386 2% Broken (FOB FCL) LRDEC00 568.00 -22.00 Medium Grain #2 5% Broken (FOB FCL) LRFAB00 NA NA Medium Grain #3 10% Broken (FOB FCL) LRFBA00 NA NA Vietnam - Long Grain Glutinous Rice Pakistan - Long Grain Parboiled Rice Round Grain #2 5% Broken (FOB FCL) LRFCB00 NA NA White Glutinous 10% Broken (FOB FCL) LREAB00 519.00 -1.00 Parboiled Milled 5% Broken STX LRDGG00 448.00 -10.00 Round Grain #3 10% Broken (FOB FCL) LRFDA00 NA NA Parboiled Milled 15% Broken STX LRDHG00 443.00 -10.00 100% Broken Grade 0 (FOB FCL) NA NA Cambodia - Long Grain Fragrant Rice LRFEC00 Phka Malis (Wet Season) 5% Broken STX LREFB00 790.00 0.00 Pakistan - Basmati Rice Italy - White Rice (Eur/mt) (FOB FCL) Super Kernel White Basmati 2% (FOB FCL) LRDIG00 825.00 -25.00 Indica 5% Broken (Ex-works) LRLBB00 670.00 0.00 Sen Kra Ob (Dry Season) 5% Broken STX LREGB00 750.00 0.00 Super Kernel Brown Basmati 2% (FOB FCL) LRDJG00 770.00 -20.00 Arborio 5% Broken (Ex-works) LRLCB00 850.00 0.00 (FOB FCL) Super Kernel Parboiled Milled Basmati 2% LRDKG00 915.00 -35.00 Basis: FOB bulk vessel, unless otherwise stated. Fragrant 100% Broken A1 Super (FOB FCL) LREHC00 450.00 0.00 (FOB FCL) 1121 Steam Basmati 2% (FOB FCL) LRDLB00 875.00 -5.00 Myanmar - Long Grain White Rice 1121 Parboiled Milled Basmati 2% LRDMD00 850.00 +5.00 5% Broken (FOB FCL) LRHAB00 450.00 0.00 (FOB FCL) 25% Broken LRHBE00 390.00 0.00 B1 & B2 Broken (FOB FCL) LRHCI00 365.00 0.00

www.platts.com Rice Weekly February 26, 2021

Estimated Volatility Index (12-months) Value Value Value Thailand - Long Grain White Rice Myanmar - Long Grain Parboiled Rice US - Gulf Long Grain Rice 100% Grade B RVAAC00 12.80% Parboiled Milled 5% STX (FOB FCL) RVHDB00 11.20% US #2, 4% Broken, Hard Milled RVIAH00 11.10% 5% Broken RVABB00 13.00% (FOB Lake Charles) 10% Broken RVACA00 13.10% India - Long Grain White Rice US #2, 4% Broken, Hard Milled RVIBH00 7.30% 15% Broken RVADD00 11.10% 5% Broken RVCAB00 17.40% (FOB Bulk NOLA) 25% Broken RVAEE00 11.30% 25% Broken RVCBE00 21.00% US #3, 15% Broken, Hard Milled RVICD00 8.30% A1 Super 100% Broken RVAFC00 12.70% 100% Broken RVCCC00 12.30% US #5, 20% Broken, Hard Milled RVIDF00 8.20% Swarna 5% Broken RVCDB00 28.00% US #1, Parboiled Milled 4% Broken RVIEH00 10.70% Thailand - Long Grain Parboiled Rice Sharbati 2% Broken (FOB FCL) RVCEG00 45.80% US #2, Paddy, 55/70 Yield RVIFI00 11.40% Parboiled Milled 100% STX RVAGC00 11.30% Southern Flour Quality Broken (Ex-works) RVIGI00 8.90% India - Long Grain Parboiled Rice Parboiled Milled 100% RVAHC00 19.10% Southern Pet Food Quality Broken RVIHI00 3.10% Parboiled Milled 5% STX RVAIB00 18.90% Parboiled Milled 5% STX RVCFG00 8.90% (Ex-works) Parboiled Milled 5% RVAJB00 19.30% India - Basmati Rice US - Californian Medium Grain Rice Thailand - Long Grain Fragrant Rice Traditional White Basmati 2% (FOB FCL) RVCGG00 23.40% US #1, 4% Broken (FAS FCL Oakland) RVIIH00 10.30% Hom Mali 100% Grade B (FOB FCL) RVAKA00 8.50% Traditional Brown Basmati 2% (FOB FCL) RVCHG00 16.50% US #1, Paddy, 58/69 Yield (Ex-works) RVIJI00 11.40% Hom Mali A1 Super 100% Broken RVALA00 7.00% Traditional Parboiled Milled Basmati 2% RVCIG00 21.20% (FOB FCL) (FOB FCL) South America - Long Grain White Rice Pathumthani Fragrant 100% Grade B RVAMC00 13.40% Pusa White Basmati 2% (FOB FCL) RVCJG00 18.20% Uruguayan 5% Broken (FOB FCL) RVJAB00 6.40% (FOB FCL) Pusa Brown Basmati 2% (FOB FCL) RVCKG00 21.30% Uruguayan Olímar 5% Broken (FOB FCL) RVJBB00 13.00% Pusa Parboiled Milled Basmati 2% RVCLG00 16.40% Argentine 5% Broken (FOB FCL) RVKAB00 8.80% Thailand - Long Grain Glutinous Rice (FOB FCL) Brazilian 5% Broken (FOB FCL) RVGAB00 16.20% White Glutinous 10% Broken (FOB FCL) RVANC00 18.90% 1121 White Basmati 2% (FOB FCL) RVCMG00 29.90% Brazilian 100% Broken (1/2 Grain Brokens) RVGBC00 15.90% 1121 Parboiled Milled Basmati 2% RVCNB00 18.60% Paraguayan 5% Broken (FOB FCL) RVLAB00 22.60% Vietnam - Long Grain White Rice (FOB FCL) 5% Broken RVBAB00 8.70% South America - Long Grain Parboiled Rice 10% Broken RVBBA00 8.80% Pakistan - Long Grain White Rice Brazilian Parboiled Milled 5% Broken STX RVGCB00 14.90% 15% Broken RVBCD00 8.90% 5% Broken RVDAB00 11.90% (FOB FCL) 25% Broken RVBDE00 9.10% 10% Broken RVDBA00 12.00% Uruguayan Parboiled Milled 5% Broken STX RVJCB00 3.60% 100% Broken RVBEC00 11.40% 15% Broken RVDCD00 12.70% (FOB FCL) 25% Broken RVDDE00 14.60% Vietnam - Long Grain Fragrant Rice 100% Broken RVDFG00 13.30% Egypt - White Rice Fragrant 5% Broken RVBFA00 16.20% 386 2% Broken (FOB FCL) RVDEC00 19.90% Medium Grain #2 5% Broken (FOB FCL) RVFAB00 NA% Medium Grain #3 10% Broken (FOB FCL) RVFBA00 NA% Vietnam - Long Grain Glutinous Rice Pakistan - Long Grain Parboiled Rice Round Grain #2 5% Broken (FOB FCL) RVFCB00 NA% White Glutinous 10% Broken (FOB FCL) RVEAB00 12.50% Parboiled Milled 5% Broken STX RVDGG00 14.40% Round Grain #3 10% Broken (FOB FCL) RVFDA00 NA% Parboiled Milled 15% Broken STX RVDHG00 15.10% 100% Broken Grade 0 (FOB FCL) NA% Cambodia - Long Grain Fragrant Rice RVFEC00 Phka Malis (Wet Season) 5% Broken STX RVEFB00 10.40% Pakistan - Basmati Rice Italy - White Rice (FOB FCL) Super Kernel White Basmati 2% (FOB FCL) RVDIG00 20.40% Indica 5% Broken (Ex-works) RVLBB00 18.10% Sen Kra Ob (Dry Season) 5% Broken STX RVEGB00 12.10% Super Kernel Brown Basmati 2% (FOB FCL) RVDJG00 25.50% Arborio 5% Broken (Ex-works) RVLCB00 17.20% (FOB FCL) Super Kernel Parboiled Milled Basmati 2% RVDKG00 26.40% One-year Exponentially Weighted Moving Average. Fragrant 100% Broken A1 Super (FOB FCL) RVEHC00 11.40% (FOB FCL) 1121 Steam Basmati 2% (FOB FCL) RVDLB00 12.60% Myanmar - Long Grain White Rice 1121 Parboiled Milled Basmati 2% RVDMD00 9.90% 5% Broken (FOB FCL) RVHAB00 12.70% (FOB FCL) 25% Broken RVHBE00 11.70% B1 & B2 Broken (FOB FCL) RVHCI00 9.00%

Market commentary Multiple sources reported that Malaysia’s Bernas loaded on March 10, according to one source. The source entered the market at this point to purchase a significant added that while approximately 30,000 mt of the cargo will Platts Thailand Rice Weekly Commentary volume. While being a widespread talking point, details comprise parboiled rice destined for Durban, around 15,000 such as the volume purchased remain unclear. mt of capacity will be discharged in Maputo, Mozambique – ■■L ong grain market reopens with much firmer undertone One exporter, typically involved in Bernas tenders, said an unusually large portion of the shipment. ■■Private white rice demand remains “extremely quiet” ■■Exports in January down by 12% on month: Ministry of that no tender had been announced and that Bernas must South Korea’s Agro-Fisheries and Food Trade Corporation Commerce have purchased directly from an exporter. “Some people awarded Thai exporters a total of 1,500 mt of rice on Feb. 24, are adamant that the recent domestic buying is for including 1,400 mt of long grain and 100 mt of Hom Mali (see The Thai white and parboiled rice markets opened the week Bernas”, the exporter added. Bernas did not respond to a Tenders). While the tender was held on Jan. 22, testing ending Feb. 26 much firmer due to covering of sales to request for comment. issues delayed the announcement of awards. Asian destinations on Feb. 19. Exporters also cited recent tender sales to Japan, in Asian demand for Hom Mali and Glutinous rice remained addition to an indirect sale to Iran, as potential reasons for thin following Lunar New Year on Feb. 12, with minimal the abrupt reversal to the increasingly bearish activity reported and Hom Mali 100% Grade B closed the Unofficial and preliminary Thai rice exports momentum. Thai 5% broken white rice closed the week week assessed down to $805/mt FOB FCL. West African (EXCLUDING HOM MALI FRAGRANT RICE) assessed up at $519/mt FOB. However, white rice demand demand also remained subdued for Hom Mali A1 Super 100% Week ending Weekly exports exports since y-o-Y change (mt) January 1, 2021 (%) from private buyers remained illiquid, with one major broken, which was assessed down at $468/mt FOB FCL. One (mt) exporter reporting that the market is “extremely quiet” trader for the region viewed offers at $470/mt FOB FCL as 03-Jan 20,915 140 -98 and that some exporters may be forced to leave the “too high for our markets.” Pathumthani market activity also 10-Jan 68,472 68,612 -23 17-Jan 55,362 123,973 -32 market until liquidity returns. remained subdued, although it is expected to pick up in the 24-Jan 82,204 206,178 -25 Demand for parboiled rice from South African buyers coming weeks with the harvesting of the off-season crop. 31-Jan 96,775 302,953 -16 improved as the week progressed and Parboiled 100% STX The Thai market was closed on Feb. 26 for a public holiday. 07-Feb 89,267 392,220 -14 14-Feb 45,926 438,146 -8 closed the week assessed up to $524/mt FOB. The monthly Thai rice exports totaled 421,477 mt in January, down Source: USDA breakbulk shipment to South Africa is due in Thailand to be 12% on the month and 23% on the year, according to the

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Ministry of Commerce. Milled rice exports are estimated at This reallocation of land away from IR 50404 long grain shortly afterward, pointing to the change in sentiment as 375,803 mt. Of this volume, 54,666 mt were exported to rice has weighed on prices of Fragrant rice and supported more new crop becomes available. Cameroon, 48,596 mt to the US and 46,188 mt to South white rice prices, reducing the premium for Fragrant rice Another seller of DT8 said they had also received Africa. Broken rice exports are estimated at 40,999 mt. Of over white rice to just $5/mt, its lowest level since S&P inquiries from African buyers, adding that typically interest this volume, 9,630 mt were exported to Senegal, 7,553 mt Global Platts assessments began in 2011. Vietnamese 5% for the Fragrant variety comes from Ghana, Ivory Coast to Cameroon and 6,991 mt to Ghana. Brown rice exports are broken white rice closed the week assessed up at $515/mt and Mozambique. estimated at 4,675 mt. Of this volume, 935 mt were FOB as lower offers were no longer available. White Glutinous 10% broken was assessed down slightly exported to the UK, 756 mt were exported to the US and "It's likely that white rice will set the floor for how low to $519/mt FOB FCL, and renewed interest from China was 474 mt were exported to Singapore. DT8 could drop," said one trader. reported by one trader who had lowered their indication for Growers preference for more niche varieties has also the variety. made Vietnamese white rice prices much higher than other Vietnamese exporter Trung An Hi-tech Farming is origins. Traders say that there have even been inquiries expecting the value of country's rice exports in 2021 to about importing 5% broken rice from India, where prices exceed the 2020 total of $3.07 billion, the state-owned are currently $100/mt lower. Vietnam News Agency reported, quoting the company's Vietnam bought around 70,000 mt of broken rice from General Director Pham Thai Binh, who highlighted that India late in 2020, according to a Reuters report in January, Vietnam's rice sector has restructured to focus on quality and most traders said those purchases would mostly be over quantity. used for animal feed and brewing. When that news was announced, officials in Vietnam Platts Cambodia Rice Weekly Commentary were quick to dismiss the idea that Vietnam might face any ■■Strong demand supports Sen Kra Ob price shortage of white rice. News website Vietnam.net quoted ■■5451 long grain harvesting fully underway an official from the Ministry of Agriculture and Rural ■■Q1 2021 exports expected to decrease on year: CRF Development saying "for sure there will be abundant rice for export." However, the official did not specify whether that Strong demand from multiple destinations continued to would include the variety knows as IR 50404, which is support the price of Cambodian Sen Kra Ob 5% broken STX. typically the most widely exported white rice variety thanks S&P Global Platts’ assessment of this variety was to demand from Cuba and Africa. unchanged at $750/mt FOB FCL based on bids and offers, One trader said that while they did not know of any with bids from Chinese buyers reported at around $720/mt Platts Vietnam Rice Weekly Commentary confirmed Vietnamese purchases of 5% brokens from India, FOB FCL. there had been interest in offers on a CFR basis. While one exporter believed that Chinese buyers would ■■White rice prices stable as domestic demand limits exports Fragrant 5% broken closed the week assessed down at accept offers of Sen Kra Ob at $740/mt FOB FCL, it would ■■Vietnamese traders inquire about importing 5% broken $520/mt FOB, with Philippine buyers unwilling to trade at only create a very small profit margin for exporters due to white rice from India the higher levels seen earlier in February. high Sen Kra Ob paddy prices and they decided instead to ■■Fragrant rice price falls as new harvest approaches One market source speaking early in the week said that focus on covering previous sales. ex-warehouse prices for DT8 in Vietnam were the equivalent Competitively priced Thai Hom Mali continued to put Despite the imminent arrival of the new crop, Vietnamese of around $540/mt FOB, and that the lower export offers pressure on the price of Phka Malis 5% broken STX. white rice prices were stable, underlining the effect of many came from traders speculating on an upcoming fall. However, Platts’ assessment of this grade was also farmers' decision to grow other, less commoditized "The price of DT8 has come down already, but buyers unchanged at $790/mt FOB FCL, as exporters resisted varieties of rice instead, especially Fragrant rice. have also lowered their target prices," said one source lowering their offers due to tightening supplies. Fragrant

100% broken A1 Super was assessed unchanged at $450/ underpinning export logistics for the foreseeable future. mt FOB FCL as exporters maintained their offers. One participant said that while shipments had resumed Harvesting of the 5451 long grain crop progressed in the in the week ending Feb. 19, they had come to a halt again. week ended Feb. 26, with significant volumes harvested in In this context, fresh offers were unavailable and prices most provinces, according to one exporter. This exporter remained largely nominal, as a result. also reported that Vietnamese cross-border demand for Myanmar 5% and 25% broken white rice were assessed 5451 paddy has slowed amid COVID-19 related issues at the unchanged at $450/mt FOB FCL and $390/mt FOB, countries’ borders. Sales of 5451 5% broken white rice to respectively. B1 & B2 broken rice and Parboiled 5% STX were China continued to be reported at around $575-$580/mt also assessed unchanged at $365/mt FOB FCL and $530/mt FOB FCL, although one exporter speculated that declining FOB FCL respectively, amid extremely limited liquidity. paddy prices could weigh on the price next week. The US Department of Agriculture, or USDA, has According to Cambodia Rice Federation President Song forecast exports in January at 260,000 mt (milled Saran, as reported by news website Khmer Times, equivalent), down by 9.3% month on month but up by 18% Cambodian exports in Q1 2021 are expected to decrease on year on year. The month-on-month decline was attributed the year. Global shipping issues were cited as the principal to high domestic prices and Chinese buyers not having reason for the anticipated decline, with shipping dubbed received import licenses for whole grain rice. However, “the main challenge for the sector currently”. A shortage of broken rice sales to China were boosted by greater demand containers and space on pre-courier transport from ahead of Lunar New Year (Feb. 12). Sihanoukville Port to ships have affected sales to Europe, The USDA forecast main crop and off-season crop which declined by almost 60% year on year in January. planted area at 6.1 million hectares and 1 million hectares, respectively. The main crop harvest was nearly 99% Platts Myanmar Rice Weekly Commentary complete by late January, while planting of the off-season crop was estimated to be 45% complete. Inadequate ■■Political unrest disrupts rice supply chain rainfall is expected to result in reduced field yields. Reduced ■■Exporters refrain from offering amid high uncertainty ■■January milled rice exports forecast at 260,000 mt: production, strong broken rice demand from China and USDA delays caused by social unrest were expected to support higher domestic prices in February. Myanmar exporters continued to face significant hurdles in the week ending Feb. 26 due to the political turmoil which Platts India Rice Weekly Commentary ensued from the Feb. 1 military coup. ■■Rising freight rates, tightening container availability Government departments remained closed, resulting in constrain fresh trade participants’ inability to obtain documents required for ■■2020-21 milled rice production forecast at record 120 exports, including phytosanitary licenses. Large protests, as million mt demand, as importers favored competitively priced Indian well as a general strike, were also reported across the country, ■■Slow end-consumer demand weighs on Basmati prices rice over other origins. resulting in further disruptions along the rice supply chain. ■■Exports total 1.6 million mt in January, up by 78% on However, participants deplored rising freight rates According to sources, cargo transportation from year: DGCIS which, coupled with tightening vessel space and container production areas to ports is complicated. In this context, availability, were said to be damaging export economics. exporters prioritized loading previously agreed sales, while The Indian non-Basmati market developed a firm undertone One trader attributed the increase in freight rates to refraining from offering fresh volumes due to the uncertainty in the week ending Feb. 26, supported by strong offshore increased demand from Indonesia, East African

destinations and the Middle East ahead of Ramadan (April area is forecast to expand by 1.6% on year to 44.5 million 12-May 12). hectares. The Indian government’s Second Advance Indian 5% and 25% broken white rice closed the week Estimates also shows 2020-21 production at a record 120 assessed up at $415/mt FOB and $385/mt FOB, million mt, which is 7% higher than average production over respectively, amid tight current crop availability and the past five years. demand from Vietnam and China. Old crop demand from Government procurement remains well above last African destinations was also reported. Parboiled 5% STX year’s levels. Expectations of record production and closed the week assessed unchanged at $385/mt FOB, with relatively low prices underpinned this, as well as the fundamentals balancing between tight supply and relatively government’s efforts to show support to farmers amid slow demand. protests against new farm laws. According to the Ministry Sources also noted strong demand for 100% broken of Consumer Affairs, Food and Public Distribution, paddy white rice, which closed the week assessed up at $285/mt procurement totaled 65.9 million mt as of Feb. 22, up nearly FOB, as exporters raised their offers. “No one is willing to 17% on the year. Punjab alone procured 20.3 million mt, or short sell anymore,” one participant said. The recent uptick approximately 31% of the total volume. activity anticipated until they are obtained. While exporters in prices and prospects of tightening stocks -- both at Finally, the USDA forecast that milled equivalent exports lowered their offers to attract fresh buying interest, one origin and destination -- prompted West African buyers to will increase by 11% on year to 14 million mt due to abundant major exporter stated that even “small demand” would seek fresh volumes. Importers also aimed to secure rice production and competitive prices compared with other cause prices to rise again. ahead of Ramadan. However, one participant noted that origins. Milled equivalent ending stocks are anticipated to Similarly, a trader described the market as a “mini cargo being loaded this week ran the risk of missing the be steady on year at 29.7 million mt, with higher exports rollercoaster” that moved according to the volume of expected delivery window. forecast to offset production increases. Chinese demand. As this demand had not materialized, 5% In contrast, Basmati demand remained moribund. Indian rice exports totaled 1.6 million mt in January, up broken white rice closed the week assessed down to $443/ Ramadan requirements have already been covered, by 78% on the year, according to the Directorate General of mt FOB as lower offers were available. One exporter said according to one major exporter, who reported slow end- Commercial Intelligence and Statistics. Non-Basmati that a 25,000-30,000 mt sale of 5% broken white rice was consumer demand and no prospects of improvement in the exports rose by 174% on the year to 1.2 million mt while concluded in the week ended Feb. 19 at around $435/mt short term. “Most of the Arab world is in lockdown, nobody Basmati exports decreased by 17% to 380,014 mt. FOB for March shipment to West Africa. However, fresh goes to the retailers for buying groceries,” the exporter demand from African destinations was minimal, with said. Pusa White Basmati 2% broken and 1121 White Basmati Platts Pakistan Rice Weekly Commentary buyers described as “silent”. 2% broken were assessed down at $877/mt FOB FCL and Pakistani 100% broken white rice closed the week ■■IRRI-6 prices soften amid reduced trade $904/mt FOB FCL, respectively. assessed down at $358/mt FOB as lower offers were ■■Prices anticipated to rise again if China returns to the The US Department of Agriculture, or USDA, has market available, although a slowdown in white rice milling is maintained its forecast for India’s milled rice production in ■■Lack of Iranian sales weigh on Super Kernel White expected to support the market in the coming days. Sales the 2020-21 marketing year (October-September) at a Basmati price of premium specification broken rice to China were record 120 million mt, up by 1.3% on the year. The reported at $395-$400/mt CFR Chinese ports on Feb. 26. production increase is driven by higher kharif crop Pakistani IRRI-6 white and parboiled rice prices softened Lower offers were also available for Parboiled 5% STX, production in October-December 2020 and is further amid a steady decline in local prices and very slow which closed the week assessed down to $448/mt FOB. supported by expectations of a healthy rabi crop harvest. offshore demand. Many participants attended Gulfood (Feb. 21-25) and While late precipitation is causing planting of the rabi While some exporters reported that Chinese buyers had while some sources said that the exhibition had gone crop to lag 2020 levels at present, the USDA anticipates received their 2021 import quotas, others reported that “well”, others stated that there was “very little turnover”, that it will recover over the next few weeks. Total planted buyers were not expecting them until March, with minimal with limited representation from countries including

Vietnam, China and Singapore due to COVID-19 travel USA CBOT Rough Rice Futures ($) restrictions. ——————————— cwt ————————————— ———————————— mt ————————————— Month February 25 Net change Net change February 25 Net change Net change The Basmati market had a softer undertone due to close price from February 24 from February 18 close price from February 24 from February 18 competitive Indian prices and as anticipated Iranian sales Mar-21 12.81 -0.06 0.07 282.30 -1.43 1.65 failed to materialize. Demand for Super Kernel White and May-21 13.11 -0.06 0.10 288.92 -1.43 2.09 Jul-21 13.36 -0.05 0.16 294.43 -1.10 3.53 1121 Parboiled and Steam Basmati from other destinations Sep-21 12.74 -0.09 -0.02 280.76 -1.87 -0.33 was limited to small volumes, with buyers asking for lower Nov-21 12.74 -0.08 -0.02 280.87 -1.87 -0.33 prices, according to one exporter. Jan-22 12.88 -0.09 -0.02 283.85 -1.87 -0.33 Mar-22 12.88 -0.09 -0.02 283.85 -1.87 -0.33 Super Kernel White Basmati 2% broken and 1121 All figures rounded to two decimal places. Steam Basmati 2% broken were assessed down at Source: CME $825/mt FOB FCL and $875/mt FOB FCL, respectively, based on fresh market information. Strong local One trader speculated that the price of paddy had US net sales highlights from February 12-18 demand supported the price of 1121 Parboiled Basmati already hit its lowest level this year and anticipated an Country Volume (mt) Japan 48,700 2% broken, which was assessed up to $850/mt FOB extended rally on the back of competition for acreage due Venezuela 18,300 FCL. While European buyers continued to inquire for to higher corn and soy prices. The trader noted that there Dominican Republic 10,000 Super Kernel Brown Basmati, buyers’ bid well below was “no urgency from farmers to load barges like before” Haiti 7,100 Panama 1,300 exporters’ offers. Super Kernel Brown Basmati 2% and that regular trade to Mexico and Central America Source: USDA broken was assessed down at $770/mt FOB FCL based provided further support to the paddy market. on bids and offers. Pakistani 386 2% broken was also The US Department of Agriculture reported a 76% assessed down at $568/mt FOB FCL as lower offers year-on-year increase in the value of US rice exports to US exports highlights from February 12-18 Country Volume (mt) were available. the Dominican Republic in 2020, to $22.8 million. US #2 Venezuela 27,500 Paddy, 55/70 Yield closed the week assessed up at $315/ Japan 13,400 mt FOB bulk NOLA as lower offers were no longer Haiti 4,500 Platts US Rice Weekly Commentary Mexico 3,600 available. Bids at around $310-$312/mt FOB bulk NOLA ■■Southern paddy price bottoms out Jordan 3,400 were also reported. Source: USDA ■■Southern mills resume operations ■■Calrose paddy price firms on supply concerns However, US #2, 4% broken white rice closed the week assessed unchanged at $525/mt FOB bulk NOLA and was US #1 Paddy, 58/69 Yield and US #1, 4% broken white rice US Southern mills resumed operations following assessed unchanged at $630/mt FOB Lake Charles as closed the week assessed up at $531/mt ($17/cwt over loan) unexpected shutdowns caused by adverse weather and exporters maintained their offers. Broken rice supply ex-works and $925/mt FAS FCL Oakland, respectively, as restrictions on energy usage in the week ended Feb. 19. remained tight due to recently slow milling activity. lower offers were no longer available. While participants Participants talked of a “changing mood” in the market The US Kansas City Commodity Office will hold a reported limited trade activity on milled rice aside from and said prices had likely bottomed out. Farmers were in no domestic tender for 200 mt US #5, 20% broken fortified Japan’s tenders, they argued that higher paddy prices rush to conclude new sales and participants reported signs long grain rice on March 2. Shipment is required in May. commanded an increase in the price of finished product. of improving demand. According to market sources, Taiwan’s Bank Corp. According to sources, ADM secured the three lots of US “The down time really has put milling time at a purchased the full 20,652 mt of US rice in its Feb. 25 rice awarded in South Korea's Agro-Fisheries and Food premium,” one source said. “There have also been issues re-tender, with prices ranging from $458.94-$550.16/mt Trade Corp.’s, or KAFFTC, Jan. 22 Minimum Market Access with availability of transportation, so it has even affected delivered government warehouse. tender (see Tenders). In total, KAFFTC awarded 45,944 mt the market more. […] Demand shouldn’t be an issue for The Calrose market also maintained a firm undertone, to US exporters but is due to hold a re-tender for the several week, if not longer.” amid reports of strong domestic and international demand. unawarded US lot on Mar. 4.

Platts South America Rice Weekly preparing for harvest time,” agreed a third, adding that offers Paraguayan 5% broken white rice was also unchanged Commentary for long grain white rice might be as low as $610/mt FOB FCL at $515/mt FOB FCL with no significant trades reported. but the situation would not be clear for another two weeks. ■■Real’s depreciation against dollar weighs on Brazilian Brazilian Parboiled 5% STX and 5% broken white rice prices Platts Italy Rice Weekly Commentary both closed the week assessed down at $630/mt FOB FCL, ■■Brazilian harvest 1.3% complete: Irga ■■Mills still looking for March orders, but demand remains as lower offers were available. Brazilian 100% broken white ■■Uruguayan prices stable as traders await clarity on new weak crop rice closed the week assessed up at $370/mt FOB on ■■Paddy prices remain broadly unchanged on week limited availability. “The start of the harvest will be ■■Indica buyers looking to Asia and South America, One source said that the US Department of Agriculture’s staggered across the country until the second half of despite logistical issues annual Agricultural Outlook Forum has been “mildly bullish” for March and in most provinces it won’t be complete until export prices from South America because the department well into May,” said one source. The Italian market remained sedate during the week ending raised the possibility of an 11% contraction in US rice planted According to news website Canal Rural, 12,467 hectares Feb. 26, with little market activity reported. area in the 2021-22 marketing year (August-July), which would had been harvested as of Feb. 22, representing 1.3% of the leave a supply gap in Mexico and Central America that could total sown area of 944,841 hectares. The website cited data be filled from Mercosur. Despite this, Brazilian prices fell in from Rio Grandense do Arroz Instituto (Irga). EU and UK cumulative rice imports, dollar terms after President Jair Bolsonaro moved to replace Brazilian news portal DBO reported that harvesting in September 1, 2020 - February 23, 2021 Country Volume (mt) the head of the country’s largest company, Petrobras, fuelling the country’s second largest rice producing state, Santa Austria 2,557 concerns about political instability and a weakening of the real Catarina, has started, with 1.18 million mt of paddy Belgium 20,590 against the US currency. expected to be produced. Based on the most recent Bulgaria 6,632 Croatia 0 The volatility came just as the harvest was beginning in estimates for the 2020-21 marketing year (April 2021-March Cyprus 1,750 some areas, and one trader quoted two different prices – 2022), Santa Catarina would account for 11% of the Czech Republic 14,348 one for each possible exchange rate. “It’s softening a little country’s total paddy production. Denmark 4,236 Estonia 32 these days, but it’s very difficult to put a single number on S&P Global Platts continued new crop transitions for Finland 1,115 it,” said another source. Uruguayan 5% broken white rice and Parboiled 5% STX, France 83,938 “The market is very weak this week...the market is which closed the week down at $633/mt FOB FCL and Germany 35,671 Greece 3,103 unchanged at $650/mt FOB FCL, respectively. Platts Hungary 4,409 continued its new crop transition for Olimar 5% broken Ireland 2,417 white rice, which was assessed down at $659/mt FOB FCL Italy 53,505 Latvia 530 on the sixth day of the 10-day transition. “There aren’t firm Lithuania 10,992 offers for the new crop so everyone is pushing to keep the Luxembourg 20 old crop prices,” said one trader in the country. Malta 530 Netherlands 86,872 “I haven’t seen changes this week. The harvest is Poland 37,623 delayed, prices are firm and aren’t starting to fall yet…. Portugal 26,393 they’ll certainly go down but it hasn’t happened yet,” said Romania 4,792 Slovakia 5,869 another source, explaining that the delay is due to the Slovenia 1 drought across Mercosur last year. Spain 36,842 Argentine 5% broken white rice closed the week Sweden 11,188 United Kingdom 80,355 assessed unchanged at $610/mt FOB FCL, following S&P EU + UK 536,309 Global Platts transition to new crop pricing. Source: European Commission’s D.G. of Agriculture

Demand was described by one source as “regular” but run continuously for efficiency purposes – are closing on Tenders “slow”, with mills still looking to fill their March milling weekends due to the slowdown in demand. A second schedules. A broker said that mills are complaining that broker said that the reduced milling activity is perpetuating S outh Korea awards 69,666 mt of rice in “nothing is happening” and that they are approximately half the “crazy” broken rice shortage in Europe. Jan 22 MMA tender: KAFFTC as busy as they were at this point last year. The same While Indica prices have spiked in recent weeks on South Korea’s Agro-Fisheries and Food Trade Corporation broker said that some parboiling plants – which are typically reduced production and the global container shortage, (KAFFTC) has awarded 69,666 mt out of a possible most buyers appear willing to risk delays and are snubbing 113,555 mt in its Jan. 22 Minimum Market Access tender Italian Paddy and Broken Rice Prices - Italian long grain. One such buyer remarked that it still (see table). February 23, 2021 Ex-Vercelli, Italy (Eur/mt Ex-Market) made much more sense to buy from Asia and South This is KAFFTC’s third purchase of US rice this season, Variety ‘Maximum’ Previous ‘maximum’ America. Indica 5% broken white rice was assessed its second purchase of Chinese rice and its first purchase of price price unchanged at Eur670/mt ex-works. Indica parboiled rice Thai rice since June 2020. Balilla, Centauro and similar 330 330 Sole CL 310 310 was indicated by two sources at Eur730-740/mt ex-works. In total, it awarded 45,944 mt to US exporters, Selenio and similar 350 340 Although some mills were willing to discount prices for 22,222 mt to Chinese exporters and 1,500 mt to Thai Ribe 330 330 small volume sales, generally resolute paddy prices were exporters. Loto and similar 371 371 Augusto 361 361 hindering mills from lowering prices for substantial According to US sources, official results were S. Andrea and similar 435 435 volumes, with most farmers in a strong financial position. delayed due to issues testing Chinese and Thai samples, Roma and similar 385 385 Arborio 5% broken white rice was also assessed unchanged with “unofficial” results circulating in the Californian Baldo and similar 435 435 Arborio and Volano 455 455 at Eur850/mt ex-works. market in early February which correspond to KAFFTC’s Carnaroli and similar 485 485 One broker said a small week-on-week decrease in official results. Thaibonnet and similar 375 375 the price of Carnaroli paddy to Eur500/mt ex-works, while In its previous MMA tender on Dec. 8, KAFFTC awarded Broken the Vercelli Chamber of Commerce reported a Eur10/mt the full 45,458 mt of US and Vietnamese rice. Corpetto 440 430 increase in the price of Selenio paddy (see table). Another Mezzangrana 430 420 source was perplexed by the higher Selenio paddy price Source: Vercelli Chamber of Commerce S outh Korea to hold brown rice re-tender due to extremely slow demand for round grain rice. on March 4: KAFFTC Italian Milled Prices - February 23, 2021 The source speculated that it could be that thin Ex-Vercelli, Italy (Eur/mt Ex-Market) liquidity in the round grain market is producing erratic South Korea’s Agro-Fisheries and Food Trade Corp, or Variety ‘Minimum’ Previous ‘minimum’ price price price moves. KAFFTC, will hold a re-tender on March 4 for two of the Originario 640 640 Selenio 780 780 S. Andrea 900 900 KAC FFT ’s Jan. 22 MMA tender results Roma 850 850 Variety Volume (mt) awarded origin awarded Awarded price Port of arrival arrival date Baldo 900 900 companies ($/mt CIP) Ribe 680 680 Non-glutinous brown MG 22,222 US NA - Donghae 30-Jun Augusto 710 710 Non-glutinous brown MG 22,222 US Fina Line Co. $918.24 Incheon 30-Jun Arborio 1040 1040 Non-glutinous brown MG 22,222 US Fina Line Co. $912.34 Gunsan 31-Jul Carnaroli 1050 1050 Non-glutinous milled MG 1,500 US Fina Line Co. $997.64 Busan 30-Jun Thaibonnet 680 680 Non-glutinous milled LG 1,400 Thailand Jupiter Agricultural Co. $620.00 Busan 31-May Non-glutinous milled LG (Hom Mali) 100 Thailand Hyorim International $1,176.66 Busan 31-May Parboiled Non-glutinous brown SG 22,222 China POSCO Intl. $927.00 Incheon 30-Apr Ribe 770 770 Non-glutinous brown SG 16,667 China NA - Masan 30-Jun Baldo 980 980 Glutinous milled SG 5,000 China NA - Busan 1-May - 30-Jun Thaibonnet 760 760 Total awarded 69,666 Source: Vercelli Chamber of Commerce Source: KAFFTC

three lots not awarded in its Jan. 22 Minimum Market specific non-glutinous brown medium grain rice and 16,667 Offers are to be submitted on a CIP Donghae and CIP Access tender. KAFFTC will re-tender for 22,222 mt of US mt of Chinese specific non-glutinous brown short grain rice. Masan basis for Sept. 30 and June 30 arrival, respectively.