Rice prices continue to lose strength in Brazil

Market & Price Trends
Published Feb 24, 2024

Tridge summary

The Brazilian rice market is experiencing a downward trend with prices falling to R$100 per 50-kilo bag in Rio Grande do Sul. Despite this, the rise in US export prices could open up opportunities for Brazilian rice sales abroad. The new harvest area is estimated to be around 900 thousand hectares and is expected to yield well, although weather uncertainties in Rio Grande do Sul could impact this. The average price of rice has decreased by 3.56% week-on-week and 13.04% month-on-month, but has seen a 32.63% increase compared to the same period in 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

The Brazilian rice market maintained its downward trend in this penultimate week of February. One-off deals are already reported in the range of R$100 per 50-kilo bag in Rio Grande do Sul, the main national benchmark, depending on specific conditions, reports Safras & Mercado analyst and consultant, Evandro Oliveira. Meanwhile, in the United States, export prices are on the rise, reaching up to US$475 per ton, which opens up opportunities for new foreign sales of the Brazilian product. The decline in freight rates and the logistical relief for soybeans also contribute to a favorable scenario for shipments of the cereal, considers Oliveira. As for the new harvest, area estimates are converging to around 900 thousand hectares. Although there are still uncertainties about the average productivity in the state of Rio Grande do Sul, a large part of the area sown in a favorable window of good solar incidence presents good conditions and should generate good yields, the analyst believes. ...
Source: CanalRural
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