The price of rice reacts after a prolonged drop, driven by federal auctions.

After a downward trajectory that began at the end of July, husked rice registered its first weekly increase, according to a survey by Cepea. The upward movement is attributed to the federal government's signaling of intervention through auctions of PEP (Premium for Product Shipment) and Pepro (Equalization Premium Paid to Rural Producers). The notices released by Conab foresee the commercialization of 444,900 tons of rice, with the aim of guaranteeing the minimum price for the producer and stimulating the outflow of surplus to previously defined regions. In Rio Grande do Sul, the main producing state, the minimum price was set at R$ 63.64 per 50 kg sack. The first two auctions – notices 106 (Pepro) and 107 (PEP) – were scheduled for December 22, with the reoffer of leftovers on December 23, in new notices. The expectation surrounding these operations directly influenced the behavior of the market. As detailed in the official documents, the maximum premium per sack can reach R$ ...