Conab downsizes rice export projection in Brazil

Brazil’s National Supply Company (Conab) projected, in its 7th survey on the 2022/23 harvest, a volume of 1.5 million tonnes in rice exports this year, 40.66% less than the total for 2022, with exports of 2.11 million tonnes. This is because, as explained by Allan Silveira dos Santos, superintendent of Market Studies and Supply Management, in a live presentation of the survey this Thursday (13), there is a chance that US production will increase in the 2023/2024 harvest after the country experienced climate problems in 2022. This helped to increase Brazilian exports of grain in the previous year.

“But this recovery is still sluggish compared to the historical average of American production, so we will likely see fewer exports, albeit at a level that is still greater than the historical average,” commented the superintendent.

Exports for the first three months of the year already show a decrease of 17.65% from the same period last year, from 450.42 thousand tonnes to 370.9 thousand tonnes. Still, even so, they represent an increase of 78.5% compared to the first quarter of 2021, when 207.73 thousand tonnes were exported.

Santos also projected an increase in rice prices, which went down. “With the fast-approaching core of the harvest, which is happening now in April, we shall see a slight drop in rice prices, which should be temporary while there is this greater supply,” he explained.

Thus, the expectation for the second half is a price recovery due to a smaller planted area and lower production. Conab data shows over 60% of the planted area has already been harvested.

Source: Correio do Povo

To read the original news report, see: https://www.correiodopovo.com.br/not%C3%ADcias/rural/conab-projeta-queda-nas-exporta%C3%A7%C3%B5es-de-arroz-1.1017019

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