Rice price falls and falls below production costs

Paddy rice prices began to operate below production costs. production, which had not been observed since April/20. This is because, at the beginning of the pandemic, the supply of raw materials for input production decreased, while the Real depreciated against the dollar, making prices significantly more expensive. products used in cereal cultivation.

As for paddy rice, according to Cepea employees, the high current availability and the expectation of high ending stocks have put pressure on values ​​in Rio Grande do Sul. Thus, producers have shown preference for trading other commodities to the detriment of paddy rice.

In spot, between November 9th and 16th, the ESALQ/SENAR-RS Rice Indicator, referring to the cereal of 58% whole grains and payment in cash, ceded 1,2%, to R$ 64,97/50 kg bag this Tuesday, 16th, the lowest nominal value since July of 2020. In the month, the drop reached 4,88%.