Brazilian rice market continues to face adverse conditions

Published Jun 12, 2023

Tridge summary

Brazil's rice industry is experiencing challenges due to the unfavorable exchange rate, leading to more imports of the product than domestic purchase. In May, foreign sales of paddy rice reached 111.88 thousand tons and exports of processed rice totaled 58.31 thousand tons, while imports exceeded 91.72 thousand tons. The weak dollar against the real and pressure from other commodities like soy and corn have made Brazilian rice less attractive on the foreign market, affecting domestic quotations and the competitiveness of Brazilian industries. Producers are struggling to balance production costs with fair sales prices, with limited sales and higher prices per bag.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

“The unfavorable relationship between the exchange rate and national and international prices has led many industries to consider importing rice more viable than acquiring it in the country, benefiting markets like Paraguay”, explains the SAFRAS & Mercado analyst and consultant. Evandro Oliveira. According to data from the Foreign Trade Secretariat (Secex), foreign sales of paddy rice reached around 111.88 thousand tons in May, while exports of the processed product totaled 58.31 thousand tons in the month. Meanwhile, imports of processed rice exceeded 91.72 thousand tons in the period, while external purchases of the product in the husk reached only 2.78 thousand tons. Already according to the latest report of shipments in Brazilian ports, the line-up, around 76.4 thousand tons are scheduled for shipment in the first half of June. In the accumulated for the season, rice export records (husk base) reach 399.21 thousand tons (March/June). In 2022, the accumulated was 631.29 ...

Source: Portal Do Agronegocio