Despite recent steadiness in prices, Brazil’s rice market will start 2021 with attractive prices. According to SAFRAS & Mercado analyst, Élcio Bento, regardless the recent drop in prices, producers from Rio Grande do Sul would cover production costs and achieve a yield margin close to 46%. “The problem was that most producers had negotiated rice production before the price jump in mid-August,” he recalls. “We expect next harvest will bring better returns”. Now, attention is focused on the US dollar, which can make imports more attractive if Brazilian real continues posting strong gains against US dollar. Until the fourth week of December, rice husk imports totaled 83.829 thousand tons, with a daily average of 4.657 thousand tons. In comparison with the daily average of December 2019, there was an increase of 788.78%. Regarding the 2020/21 harvest, the National Supply Company (Conab) indicates a production of 10.943 million tons, which represents a decrease of 2.1% over the 11.183 million tons of 2019/20.
Source: Safras & Mercado
*Translated by Ia Niani