Brazilian rice scenario changes, exports rise and and may lack in domestic market

Posted by Marina

A scenario of high exchange rate with the dollar above $ 4.00 favored Brazilian rice exports over imports, changing the reality of the market of this grain in the country.

According to the president of Federarroz, Alexandre Velho, the expectations at the beginning of the year were exports around 900 thousand tons and imports close to 1.3 million tons. However, to date, 1.4 million tons have been exported and only 950,000 imported.

Another fuel for this result was the search for new markets for Brazilian rice, such as Mexico, which should buy a large amount of domestic rice, and Iraq, which has already closed some deals and is expected to import another 30,000 tons in 2019.

Despite this new positive outlook, the area of ​​the current rice crop in Rio Grande do Sul is expected to be about 5% smaller than last year, close to 940,000 hectares, according to data collected by Irga.

Thus, Velho warns of the possibility of rice shortage in the Brazilian market between the months of November and January and that final consumer prices should rise soon in view of this perspective.

By: Guilherme Dorigatti