After seven years, the rice trade balance in Brazil will have a deficit

Published 2024년 8월 28일

Tridge summary

Brazil's rice trade balance is projected to have a negative balance of up to 400,000 tons by the end of the year, marking a significant shift after six seasons of surplus. This is attributed to the country's strong import activity, driven by higher domestic prices, which are currently more attractive than in other regions like Mercosur, the United States, and Asia. As a result, Brazil has imported 1.024 million tons and exported 731.4 thousand tons from January to July, leading to a deficit of 293,538 tons or 28.6%. Conab projects that Brazil will import 1.7 million tons and export 1.3 million tons, a pattern that, if maintained, will result in a challenge to reach previous volume levels due to the high import activity and the influence of larger American crops. Additionally, the article discusses the potential impact of the US's good harvest, the shift in Mexico's rice purchasing preferences towards Thailand, and the influence of Indian exporters on global and domestic rice prices, highlighting the complex interplay of global market dynamics and Brazil's domestic rice market.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

(By Planeta Arroz) Brazil's rice trade balance is expected to close the year with a negative balance of up to 400,000 tons, after six seasons of accumulated surplus. The National Supply Company (Conab) expects Brazil to import 1.7 million tons and export 1.3 million. The numbers so far are trending in this direction. From January to July, the country imported 1.024 million tons and exported 731.4 thousand, with a deficit of 293,538 tons, or 28.6%. Shipments so far are 26.5% lower than between January and July 2023. To reach last year's volumes of 1.754 million tons shipped, the country would need to negotiate an additional 1.022 million tons in five months, an average of over 200,000 tons per month. To reach Conab's estimate of 1.3 million, it would need to make monthly shipments of 113.7 thousand tons, compared to the average, so far, of 104.5 thousand tons. The month of July had the highest shipment volume of the year, at 175 thousand tons, but still 30.8 thousand lower than the ...
Source: Planetaarroz

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