Conab negotiates 109,2 thousand tons of rice in auctions

In the Put Option Contract (COV) auctions held on the 21st and 22nd, the National Supply Company (CONAB) traded approximately 109,2 tons of rice, almost all of the 110 tons offered. In total, 4.044 contracts were traded, representing 99,8% of the total offered by the state-owned company. If producers choose to sell their product to the federal government upon the contract expiration date, the estimated investment could reach R$181,1 million, including purchasing and operating expenses.

For Conab president Edegar Pretto, auctions are a way to ensure security and profitability for farmers. "These negotiated securities allow producers to sell to the government in the future at pre-established and fair prices. It's the federal government's helping hand, ensuring profitability when private market prices are unfavorable for farmers," he stated.

The auctions were attended by farmers and cooperatives from Rio Grande do Sul and Santa Catarina. In Rio Grande do Sul, 99% of the contracts offered were sold, totaling 2.934 contracts, including all those maturing in October. In Santa Catarina, sales reached 100% of the offer. According to Arnoldo de Campos, Director of Operations and Supply at Conab, "through this instrument, the producer is protected and, at the same time, allows the federal government to reinforce public stocks."

According to the notices, the contracts expire on September 30 and October 31, with sales values ​​already established according to the term, including logistical and financial costs from harvest to delivery of the product.

The operation was authorized by the Ministries of Finance, Agriculture and Livestock, and Agrarian Development and Family Farming, according to Interministerial Ordinance No. 26, published in the Official Gazette of the Union. The measure aims to support the sector in the face of falling rice prices, amid a scenario of good market supply and the resumption of Asian exports, which are expanding the international supply of the grain.

In addition to this COV round, Conab is authorized to purchase up to 20 tons of rice through the Federal Government Acquisition (AGF), a tool within the Minimum Price Guarantee Policy (PGPM) that ensures a minimum price for producers. Last year, the federal government launched a first round of COV auctions, negotiating approximately 91,7 tons of rice across 3.396 contracts, reinforcing support for the activity.