Rice Prices in Brazil Fall Below Export Parity in March

According to the Center for Advanced Studies in Applied Economics (Cepea) of Esalq/USP, rice exports have been more profitable for Brazilian producers than the domestic market.

In March, the average Cepea/Irga-RS indicator for paddy rice was R$82.21 per 50-kilogram sack, a decrease of 14.09% compared to the previous month. According to Cepea, this price was R$14.54 below the average export price and R$5.81 lower than the average import price.

According to data from the Foreign Trade Secretariat (Secex), Brazilian exporters received an average of USD 336.96 per ton last month, equivalent to R$96.75 per 50-kg sack at the port of shipment. Cepea highlights a strong depreciation of 23.07% from February to March in the value paid for Brazilian rice, considering the average exchange rate of R$5.74 per dollar last month.

According to Secex, 134.67 thousand tons of rice were exported in March, a 171% increase compared to February. As for imports, 105.54 thousand tons were purchased last month, down 25.29% from February.

The average price of imported rice was USD 306.53 per ton, or R$88.02 per 50-kg sack—a 6.36% drop on a monthly comparison, also according to Secex. With exports surpassing imports, the rice trade balance had a surplus of 29.13 thousand tons in March, a scenario not seen since December, Cepea’s analysis noted.

Source: Globo Rural

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