Rice producers have until Friday to advance sales to Conab

Rice producers who negotiated option contracts with the National Supply Company (Conab) can anticipate the delivery of the grain until Friday, April 25. The sale takes place through the commodity exchanges that participated in the auctions. Interested parties should contact the brokerage firms responsible for their negotiations.

The advance payment will benefit farmers on the western border of Rio Grande do Sul, Paraná, Mato Grosso do Sul and Minas Gerais. In these regions, the harvest should be completed by the end of the month, according to the state-owned company's estimate. Conab is evaluating the evolution of the harvest and the history of the crops to release the delivery.

With this decision, the producer receives a lower amount than that provided for in the contract, due to the difference in logistical and financial costs. Even with the discount, the remuneration may remain above market prices. According to Conab, anyone who delivers the product in early May in Rio Grande do Sul, for example, will receive R$81,26 per 50-kilo bag. Today, the average price for the Rio Grande do Sul producer is around R$76,38.

The option contracts were traded in three public auctions held at the end of 2023. In total, 3.396 contracts were signed, equivalent to 91,7 thousand tons of rice. The measure worked as an income protection, already anticipating a possible fall in prices. With the increase in global supply and the resumption of Asian exports, the devaluation scenario was confirmed at the beginning of 2025.

The decline in prices occurs amid good global grain production. In addition to the robust harvest in Brazil, Asian countries have increased their stocks and resumed exports. This movement puts pressure on the market and reduces the negotiating power of Brazilian producers.

Conab's action also seeks to replenish public stocks. Direct purchases through contracts anticipate the formation of strategic reserves and contribute to food security policies. At the same time, it guarantees a minimum income for farmers, encouraging them to remain in the countryside.

Conab informs that there will be no extension. The state-owned company advises interested parties to formalize the request as soon as possible, to avoid unforeseen events. The process occurs within the standards established by the sector support policy, with a focus on ensuring balance between production, income and supply.