The more adjusted supply scenario between rice export and import, due to the Brazilian crop failure and the firm foreign sales, are making the Federation of Rio Grande do Sul Rice Association (Federarroz) see a positive scenario for farmers. In addition, according to the entity, the high exchange rate is providing good competitiveness to the Brazilian product. In a statement, Federarroz points out that from March to September this year, 760K tons of rice (husk base) have been exported while the importation was 636,000 tons, generating a surplus of 124,000 tons of rice until last month. Other points that motivate this optimism is the consolidation of Brazil as one of the major players in the world rice market. In addition, the expectation is that by December, the second shipment of 30,000 tons of processed rice to Iraq, a market that has been demanding Brazilian rice, will be shipped by the Rio Grande Port in Rio Grande do Sul. According to analysis by Federarroz, exports, besides expanding demand and opening and maintaining new markets, drain surpluses, neutralize imports and make the producer not hostage to domestic demand, giving greater support to prices.
Source: Canal Rural