High external demand boosts rice prices

Brazilian rice has taken up space and aroused the interest of international buyers, boosting foreign demand. This increase in demand for domestic grains has been one of the main factors behind the positive market scenario.

Together with growing foreign demand, the domestic market is facing low supply. The scarcity of the product has exerted pressure on prices, favoring appreciation in the country.

India, the main global supplier of rice, has imposed restrictions on exports. This measure can generate significant impacts on the international scenario, directly influencing rice prices around the world.

In the state of Rio Grande do Sul, an important rice producer in Brazil, the Indicator (58% of whole grains and payment in cash) showed a recovery in prices. The weighted average reached the level of R$ 85.00 per 50 kg bag, a value that had not been observed since mid-May of this year.

Brazilian Rice Exports | Jan 2019 to May 2023 | WTMT

Source: DataLiner (click here to request a demo)

The current scenario is promising for producers, but it also brings challenges to be faced. The constant search for balancing internal supply with external demand will be essential to maintain market stability. Furthermore, it is important to closely monitor India’s decisions and potential impacts at the global level.

Source: AgroNews

To read the full original report, visit: https://agronews.tv.br/alta-demanda-externa-impulsiona-precos-do-arroz/

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