Rice price in RS stabilizes amid reduced supply

Lack of crop availability, caused by adverse weather conditions, is among the factors that contributed to this new market dynamic – Photo: Pixabay

After ten weeks of consecutive declines, the paddy rice market in Rio Grande do Sul finally found stability, with the weighted average reaching R$99 per 50 kg bag, according to the CEPEA/IRGA-RS Indicator. This change in direction is driven by decreasing raw material supply, while demand remains relatively strong.

According to Cepea analysts, the lack of availability of crops, caused by adverse weather conditions, is among the factors that contributed to this new market dynamic. Despite this, business continues to be carried out on time.

Furthermore, the increased interest of trading companies in the port of Rio Grande is an additional factor that is influencing the scenario. This trend is favored by the recent appreciation of the dollar, making exports more attractive.

However, negotiations, both in the domestic and foreign markets, remain limited due to the disparity in prices and payment terms offered by agents. Cepea researchers indicate that spot transactions or through forward contracts for export are being impacted by this discrepancy.