Lack of paddy rice is already expected by the Brazilian rice processing industry

Although the Brazilian rice harvest appears to be in line with expectations, recent preliminary data forecasts a 45% fall in rice yield in Paraguay and 30% in Uruguay due to climatic issues. It is likely to have a tremendous impact on the Brazilian rice processing industry, as it depends on supplies from Brazil, Paraguay and Uruguay together. As the Brazilian currency is still undervalued, many local farmers will prefer to export their paddy rice instead of selling it to local processing factories. Another difficult year for rice origination and pressure on prices is in sight.