Market Report

May 11, 2011

U.S.D.A. World Market Price:
World Market Price This week Last week 1 Year Ago 2010 Loan WMP and Loan Rates
LDP
Value Factors 05/11/11 05/04/11 05/12/10 Factors ‘10 crop L/G M/G
Long Grain To be 18.50 15.03 00.00 9.91 Yield 52.78/14.31 61.03/8.69
Medium Grain issued 18.19 14.75 00.00 9.65 WMP 11.64 12.24
Short Grain May 11 18.19 14.75 00.00 9.65 Loan 6.23 6.50
Brokens 8:30am 13.09 10.35 - 7.01 Difference (5.41) (5.74)

Posting: (May/June Shipment)

Southern U.S. - Long Grain Abbreviation Quote Basis
U.S. #2 Long Grain, max. 4% Broken, Hard Milled #2/4% $22.50 per cwt. sacked, F.A.S. U.S. Gulf
U.S. #2 Long Grain, max. 4% Broken, Hard Milled #2/4% $22.50 per cwt, BULK, FOB Vessel US Gulf
U.S. #2 Long Grain, max. 4% Broken, Hard Milled #2/4% $23.0 per cwt. containerized FOB US Gulf
U.S. #2 Long Grain, max. 4% Broken, Hard Milled #2/4% $550.00 per mt sacked delivered Laredo TX
U.S. #2 Long Grain, max. 4% Broken, Hard Milled #2/4% $24.00 per cwt sacked delivered Miami FL
U.S. #3 Long Grain, max. 15% Broken, Hard Milled #3/15 $21.50 per cwt. sacked, F.A.S. U.S. Gulf
U.S. #3 Long Grain, max. 15% Broken, Hard Milled #3/15 $540.00 per mt sacked delivered Laredo TX
U.S. #2 Long Grain Brown, max. 4% Broken, 75% yield #2/4/75 no quote per mt bulk FOB vessel NOLA
U.S. #1 Parboiled L/G Brown, max. 4% Broken, 88% yield #1/4/88 no quote per mt bulk FOB vessel NOLA
U.S. #1 Parboiled L/G MILLED, max. 4% Broken (except 0.8% damage) #1/4 Parb no quote per mt sacked FOB vessel NOLA
U.S. #1 Parboiled L/G MILLED, max. 4% Broken #1/4 Parb $600.00 per mt bulk FOB vessel NOLA
U.S. #2 Long Grain Paddy, 55/70 yield #2 55/70 $280.00 per mt bulk F.O.B. vessel NOLA
Long Grain, max. 20% broken, Hard milled (Ghana specs) #4/20/hm $20.50 per cwt. sacked, F.A.S. U.S. Gulf
U.S. #5 L/G, max. 20% broken, WELL MILLED #5/20/wm $20.00 per cwt. sacked, F.A.S. U.S. Gulf
Southern U.S. - Medium Grain
U.S. #2 Medium Grain, max. 4% broken, Hard Milled #2/4% no quote per mt bulk FOB vessel NOLA
U.S. #2 Medium Grain Paddy, 58/69 yield #2 58/69 no quote per mt bulk FOB vessel NOLA
Southern U.S. - Package Quality
Package Quality Parboiled L/G, max. 4% broken (0.8% damage) Pkg. Parb. $28.00 per cwt. bulk F.O.B. mill
Package Quality Long Grain Milled, max. 4% broken Pkg. L/G $21.50 per cwt. bulk F.O.B. mill
Package Quality Long Grain Milled, max. 4% broken (select variety) Pkg. L/G $24.00 per cwt. bulk F.O.B. mill
Package Quality Long Grain Brown Rice, max. 4% broken Pkg. Br. $31.00 per cwt. bulk F.O.B. mill
Package Quality Medium Grain Milled, max. 4% broken Pkg. M/G $35.00 per cwt. bulk F.O.B. mill
California - Medium Grain
U.S. #1 Medium Grain, max. 4% Broken #1/4 $835.00 per mt sacked containerized FOB Mill
U.S. #1 Medium Grain, max. 4% Broken #1/4 $875.00 per mt sacked containerized Oakland
U.S. #1 Medium Grain milled rice, except max. 7% Broken (Japan Specs) #1/7% $875.00 per mt sacked in 30kg bags FOB vessel
U.S. #3 Medium Grain Brown rice, max. 8% broken (Korea Specs) #3 Brown $810.00 per mt in totes containerized Oakland
U.S. #1 Medium Grain Paddy, 58/69 yield #1 58/69 $550.00 per mt bulk ex-spout Sacramento CA
California - Package Quality
Package Rice for Industrial Use and Repackers #1/4% $37-$38 per cwt. bulk F.O.B. Mill
U.S. South Brokens:
Flour Quality brokens Flour Qlty $15.00 per cwt. bulk, F.O.B. rail
Pet Food Quality / #4 Brewers (milled) contracts M/A $13.50 per cwt. bulk, F.O.B. rail
U.S. California Brokens:
Flour Quality brokens Flour Qlty $19.00 per cwt. bulk, F.O.B. mill
Pet Food Quality / #4 Brewers contracts M/A $14.00 per cwt. bulk, F.O.B. mill
Copyright © 2011 Creed Rice. Co., Inc. All Rights reserved www.creedrice.com

May 11, 2011 - Page 1 of 4

Far East Report
SOUTHEAST ASIAN MARKETS
In Thailand, the market remains extremely
quiet, not because prices are not competitive
(they are), but due to the general lack of fresh
demand offshore...or pent up demand as is the
case with The Philippines.
Prices are mostly sideways with 100% B
quoted at $500 per mt FOB Bangkok; 5% is $480
and parboil is $505. However, due to the lack of business,
today’s quoted levels are biddable. The exceptions are
both white and fragrant brokens, and Hom Mali.
In the meantime, any new Iraq tender will
likely be delayed somewhat, account the injury
suffered by the director of the grain board in the
roadside bombing reported in our issue last week. This
seems to be the best prospect for volume business for
white rice in the near future. There are some shipments
of white rice ongoing to West Africa, albeit slow, as is the
parboil market.
Otherwise, the market is quiet and the undertone
steady to slightly softer.
In Vietnam, export activity has been pretty
healthy for the first third of 2011 with a total
of 2.5 MMT according to the Vinafood web
site...660,000 MT in April alone. The Agricultural
Ministry has projected that 2011 exports may reach as
high as 7.4 MMT. This may prove to be a little bit of an
optimistic goal...we shall see.
Prices are steady to firm, with 5% quoted at $480 per
mt FOB HCMC; whilst 25% is $445. The Viet prices are
basically on par with Thai on the higher grades.
Otherwise, the market is quiet with Indonesia
now out of the market as they complete their main
season harvest, and Iraq on hold, and The Philippines yet
to come to the table. In a word...Boring!
Thailand Exports
Jan. 1 - Apr. 27, 2011: 3,812,490 mt
Jan. 1 - Apr. 27, 2010: 2,610,203 mt
Jan. 1 - Apr. 27, 2009: 2,602,447 mt
Thai Baht 30.10-30.15 : 1 US Dollar
INDIA AND PAKISTAN
In India, the big news in the market is
the slight easing of the export ban in Andra
Pradesh Province under certain conditions for a
period of two months. The provisions allow paddy to be
exported on an interstate basis under monitored pricing.
And, that parboil rice has no restrictions and can be sold
offshore. This comes as no real surprise, as we have been
anticipating a similar plan in previous reports of ours.
This will not likely effect the global supply situation much,
with the exception of putting some additional pressure on
Thai parboil, which they are already feeling from Brazil.
In Pakistan, it is most difficult to focus on the
commercial sector with so much media coverage
on the political arena. However, we will do our
best.
The market is quiet with stable but firm prices, as IRRI-
6 5% is quoted at $480-490 per mt FOB Karachi; 25% is
$440 and brokens are $390. Parboil is slightly higher than
Thai at $515-520.
Export activity on coarse rice is mostly confined to
core markets in the region along with the usual border
trade with Iran. Basmati is rather widely traded, and
priced around $1300 FOB.

OFFSHORE QUOTES
Thailand Vietnam India Pakistan Uru. Arg. Brazil
100%B $500.00 5% $480.00 Export ban, MEP $900
5% $480.00 5% N/A 5% $480.00 $515.00 $515.00
10% $475.00 10% $475.00 10% N/A 10% no quote $505.00 $505.00
15% $470.00 15% $465.00 15% N/A 15% no quote no quote no quote
25% $455.00 25% $445.00 25% N/A 25% $440.00
Parb. 5% N/A Parb 5% $515.00 $480.00
Brokens $415.00 Brokens $415.00 Var. 1121 $1350 Parb 15%* $500.00 Brokens
Parb. 100B sorted $505.00 MEP-5% $490.00 Basmati Brokens $390.00 $385
Thai Hom Mali $930.00 MEP-25% $470.00 Traditional $1800 Basmati Paddy
Frag. Brokens $465.00 Pusa $1300 S. Kernal $1300.00 $300.00
All prices basis U.S. dollars per metric ton, F.O.B. vessel, corresponding home port *Bangladesh Specs.

Copyright © 2011 Creed Rice. Co., Inc. All Rights reserved www.creedrice.com

May 11, 2011 - Page 2 of 4

 CBOT Rough Rice Futures (05/09/11 Volume: 969 Open Interest: 22,239)
Contract Tuesday’s Close Net Change From Prices
Month Price Monday Last Report One Year Ago 05/11/10
‘11 May $13.980 UP 0.035 DOWN 1.165 ‘10 May $11.690
‘11 Jul $14.170 UP 0.045 DOWN 1.220 ‘10 Jul $11.895
‘11 Sep $15.070 UP 0.065 DOWN 1.095 ‘10 Sep $11.420
‘11 Nov $15.390 UP 0.065 DOWN 1.060 ‘10 Nov $11.605
‘12 Jan $15.695 UP 0.065 DOWN 1.025 ‘11 Jan $11.900
‘12 Mar $16.015 UP 0.065 DOWN 0.980 ‘11 Mar $12.190

U.S. Paddy Market Report ideas are $12.00 per cwt.

Texas - Buyers’ bids are slightly higher this week ranging $5.75-$6.75 California - 2010 Calrose M/G is bid at $13.00 per cwt over loan
per cwt over loan depending on variety. We are beginning to see with last trades at $13.50-$13.75. 2011 new crop traded this week at
some firm offers at $7.00 per cwt over loan. New crop planting is $13.00 per cwt over loan.
almost completed.

Louisiana - Bids are unchanged again this week at $10.90 per cwt
Reflective Prices (all basis per cwt FOB country, 2010 Crop)
FOB farm. New crop planting in SW Louisiana is almost completed.
Texas Louisianna Mid-South California
Mid South - Floods continue to cause substantial problems. There Long grain $12.25-13.25 $10.90 $10.00b/11.00a *
has been a little planting in the last few day, but most of the flooded
Med Grain * 14.50 new crop $17.25 $20.55
areas will take some time to drain. This situation merits continuous
monitoring. The cash market is basically unchanged with bids for L/G is #2 55/70, M/G is #2 58/69 (California #1)
long grain at $11.00 per cwt loaded barge up-river while sellers’ price * - These areas do not have sufficient supplies of this type to quote.

U.S. Report
U.S. GULF, MERCOSUR, & FUTURES
The Southern market remains very quiet as most of the focus is
on the horrendous flooding in the heartland of America. Whereas,
the impact on the rice growers throughout this region has yet to
be determined, it is estimated that over $500 million worth of
damage has already been done to Arkansas Agriculture alone. We
anticipate, given weather forecast for the next few weeks, that the
flooded farmland will slowly begin to subside in rice producing
areas in N.E. Ark. and the boot heel of MO. However, it is a case
by case situation, as obviously high areas will drain first and the
growers in those areas will be reprieved first. Now, this is not
to lessen the overall scope of the disaster...as some officials have
compared this to the damage done by Hurricane Katrina. In short,
will we lose some acreage?..absolutely yes. How much remains to
be seen, as there is still about a 3-4 week window of opportunity
to plant or replant. But, that is about it and yields will suffer to
some degree on the later rice. As the Mississippi River continues
to rise, and flood waters flow South, there are growing concerns
about additional flooding in places like Baton Rouge and LSU, in
particular. However, the silver lining, if there is one, is that the
Army Corp of Engineers are already planning on releasing water
into floodways by opening the Morganza spillway North of Baton
Rouge and the Bonnet Carre spillway near New Orleans (which
would drain into Lake Pontchartrain).
There is practically nothing of essence to discuss in our rice
market in the Gulf, so I will not attempt to do so.
For nominal purposes, we are finding quotes from vendors
for #2-4% long grain around $515 per mt bagged FOB or $490
Copyright © 2011 Creed Rice. Co., Inc. All Rights reserved www.creedrice.com
basis bulk. The paddy market is completely dead account the
aforementioned conditions of the river, but for argument sake let’s
call the market bid/asked at levels that reflect $265/$285.
As regards futures, we witnessed a major correction highlighted
by a limit down session on Wednesday of last week. Overall, rice
contracts were down $1.00-1.20 for the week.
No real changes in the Mercosur markets as harvest is finished
in most areas.
Our crop estimates remain (basis paddy):
Brazil -- 13.4 MMT
Argentina -- 1.7 MMT
Uruguay -- 1.5 MMT
CALIFORNIA, AUSTRALIA & THE “MED”
The general state of the market is basically
unchanged as mills continue to ship against old
business to Korea, Japan, and Libya. Prices on both
paddy and milled are basically steady.
As regards new business, we understand an
additional 12,000 mt has been purchased in the local
market earmarked for Libya, and rumors about an
additional 10,000 mt for new crop. We firmly believe Libya
will be an importer of California rice for the next
marketing year, as we do not see the situation in
Egypt changing with the ban.
Elsewhere, in Australia, their crop (like in
Mercosur) is practically complete and our estimate
is unchanged at 800,000 mt basis paddy.
The undertone of the global market for Calrose remains
firm and the outlook for the next marketing year is bright.

May 11, 2011 - Page 3 of 4

Upcoming Tenders: USDA Export Sales Highlights
(April 22 - 28, 2011)
May 17 KCCO Inv. 2000000147 tender to buy 1030mt of US
#5, max 20% Long Grain and 1030mt of US #5, max 20% Medium Sales
grain, for inland plant shipment June 6-20, June 21 - July 5 Net sales of 19,900 MT were down 49 percent from the previous
week and 70 percent from the prior 4-week average. Increases were
reported for:
May 26 AARQ TRQ tender Haiti (7,400 MT)
AARQ Association for the Administration of Rice Quotas, Inc. Mexico (5,700 MT)
NOTICE OF OPEN TENDER Saudi Arabia (2,500 MT)
Independent bids are invited for rights to ship U.S.-origin milled rice to the European Guinea-Conakry (1,100 MT)
Union under a tariff-rate quota (TRQ) granted by the EU to the United States. Equatorial Guinea (500 MT)
Bids must be submitted on May 26, 2011 for the July 2011 TRQ Tranche, in which the
following quantity is available:
Volume (metric tons) EU Duty Exports
Semi-Milled or Milled Rice 9,680 zero Exports of 59,900 MT were up 12 percent from the previous week,
(HTS item 1006.30)
but down 13 percent from the prior 4-week average. The primary
TRQ Certificates will be awarded to the highest bidder(s). Any person or entity incor- destinations were:
porated or domiciled in the United States is eligible to bid. The minimum bid quantity Mexico (21,700 MT)
is 18 metric tons. Performance security (the lesser of $50,000 or the total value of the Japan (14,400 MT)
bid) must be submitted with each bid. Potential bidders may obtain the required bid Saudi Arabia (9,200 MT)
forms and bid instructions from: Ghana (5,300 MT)
Jordan (2,100 MT)
AARQ Administrator
Economic Consulting Services, LLC Source: USDA
2001 L Street, NW, Suite 1000
Washington, D.C. 20036
Tel: (202) 466-1150 Fax: (202) 785-3330

Note: Potential bidders should consult regulations in the Official Journal of the Euro-
Upcoming Events:
pean Union to determine the applicable tariff rate on semi-milled/milled rice. AARQ June 7-9, 2011 TRT Americas Conference 2011
disclaims any responsibility for advising potential bidders on applicable tariff rates.
Potential bidders should also consult EC regulations relating to testing for unauthor- For more info go to: trtamericas.com
ized GMOs.
June 26-30, 2011 USA Rice Millers’ Association Convention
For more info go to: www.usarice.com

Tenders Results: Please note:

May 3 KCCO Inv. 2000000064 cancelled by KCCO due to a June 8 No Creed Rice Market Report to be issued account our atten-
change in program requirements. dance at the TRT Americas Conference.
June 29 No Creed Rice Market Report to be issued account our atten-
dance at the RMA convention.

USDA Crop Progress

Rice Planted - Selected States -- Week Ending Rice Emerged - Selected States -- Week Ending
May 8, May 1, May 8, 2006- 2010 May 8, May 1, May 8, 2006- 2010
State State
2010 2011 2011 Avg. 2010 2011 2011 Avg.
Arkansas 94 45 53 80 Arkansas 79 33 43 61
California 23 5 30 38 California 2 - - 9
Louisiana 95 94 96 93 Louisiana 88 81 93 83
Mississippi 87 71 77 84 Mississippi 72 53 67 68
Missouri 96 13 14 74 Missouri 70 5 10 50
Texas 95 92 93 94 Texas 69 78 79 84
6 States 83 49 57 76 6 States 67 37 45 57

Rice Co-Products - Spot market prices basis $ per short ton bulk, FOB mill (virtually no spot supply available for sale in South, except hulls)
Texas Louisiana Arkansas California
Bran: $110-$115 $105 Not Available ($110) $140-$150
Mill Feed: $45 $35 Not Available ($40)
Ground Hulls: $5 $5 $15
Unground Hulls: $5 $5 $12 $8

Creed Rice Co. Inc.  800 Wilcrest Suite 200  Houston, Texas 77042  USA
Ph 1.713.782.3260  Fax 1.713.782.4671  www.creedrice.com  email: ricecreed@aol.com & creedinc@swbell.net
Brokers • Consultants • Market Reports • Arbitrators
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May 11, 2011 - Page 4 of 4