Good production and reopening of Asian exports tend to favor rice supply on the world market

Published 2024년 12월 19일

Tridge summary

The article reports on the anticipated increase in rice production in key countries like Brazil, Paraguay, Argentina, and India for the 2024/25 harvest, with Brazil expected to reach 12.1 million tons, part of a record 18 million tons in South America. This surge, coupled with the resumption of Asian exports, leads to a market supply boost, potentially driving prices down despite off-season demands. To mitigate the challenges for producers, Brazil's Federal Government has initiated auctions for Sale Option Contracts (COV) for grain, allowing farmers to sell their produce at a guaranteed price to the government, thereby providing them with financial security and flexibility to sell in a fluctuating market. These auctions, with a budget of R$1 billion, aim to acquire up to 500 thousand tons of long grain rice for the 2024/25 harvest at prices 20% above the minimum, ensuring farmers can still benefit from higher market prices if available.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The good rice production not only in Brazil, but also in other important producing countries tends to favor the supply of the grain in the international market. In Brazil, the expectation is that the 2024/25 harvest will reach 12.1 million tons, as indicated by the data released in the 3rd Grain Harvest Survey released by the National Supply Company (Conab). The recovery of Brazilian production is a consequence of a larger sown area combined with better productivity. The volume, if confirmed, is among the largest in the last seven harvests. This panorama of area and production recovery is repeated in other important producers. Paraguay and Argentina should also increase the sown area of the grain. According to data from the United States Department of Agriculture (USDA), rice production in South America could reach 18 million tons in the 2024/25 harvest, which would represent a historic production record. In India, one of the main producing countries of the crop, there is also a ...

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