Lower rice stocks and possible area reduction support spot prices

Posted by Marina
Lower stocks in the domestic market and the expectation of a reduction in acreage in the 2019/20 season continue to support domestic rice prices, according to Cepea research. From October 22 to 29, the ESALQ / SENAR-RS Indicator, 58% whole grain with cash payment, rose 0.6%, closing at R $ 46.21 / sc of 50 kg on Tuesday, 29.

According to Conab, the final stocks of rice of the 2018/19 season, in Feb / 20, should be 521.2 thousand tons and, of the 2019/20 season, in Feb / 21, 565.8 thousand tons.

Thus, South-Río Grande rice producers consulted by Cepea started the 2019/20 crop, aware of the decline in sowing area, due to the preference for other crops, but with the expectation of higher prices in the coming months, given the low stocks. .

Source: Agrolink