Initial harvest and imports put pressure on rice prices in Brazil

Rice

Brazil

Market & Price Trends

Published Mar 7, 2024

Tridge summary

Rice prices are under pressure due to the start of the harvest season and a surge in imports, as per Itaú BBA Agro Consultancy. February saw a 10.7% drop in the average price of paddy rice in Rio Grande do Sul, while processed rice prices in São Paulo rose by 4.4%. CONAB has revised consumption figures for the last three harvests, with a notable 2.5% reduction for the 2021/22 harvest. The USDA predicts a record global production of 513 million tons. Domestically, imports in January 2024 saw a 58% increase from the same period in 2023, and exports also rose by 58% compared to December 2023.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Itaú BBA Agro Consultancy reports that the beginning of the harvest and the significant increase in imports are putting pressure on rice prices. In addition to the prospect of a satisfactory harvest, the high level of imports reduced the need for purchases by the industry, contributing to the reduction in local prices. According to the CEPEA price indicator, in Rio Grande do Sul, the average price of paddy rice registered a drop of 10.7% in February compared to January, being sold at R$114 per bag. In the regions of the Western Border and the internal Coastal Plain, prices showed even more significant reductions, reaching 17.3% and 14.5%, respectively, in the same period. In the wholesale scenario, there was a new pass-through of costs from the industry to the consumer, resulting in an increase in the prices of processed rice in February. Type 1 needle rice in São Paulo, the main consumer market, increased by 4.4% in one month, reaching R$ 171.8 per 30 kg bale. This dynamic led ...

Source: Portal Do Agronegocio