A rising exchange rate scenario with the dollar above R$ 4.00 favored exports of Brazilian rice rather than imports, changing the reality of the market for this grain in the country.
According to the president of Federarroz, Alexandre Velho, expectations at the beginning of the year were for exports of around 900 thousand tons and imports close to 1.3 million tons. However, to date, 1.4 million tons have been exported and only 950 thousand imported.
Another fuel for this result was the search for new markets for Brazilian rice, such as Mexico, which is expected to purchase a large quantity of national rice, and Iraq, which has already closed some deals and is expected to import another 30 thousand tons in 2019.
Despite this new positive outlook, the area of the current rice harvest in Rio Grande do Sul should be around 5% smaller than last year, close to 940 thousand hectares, according to data collected by Irga.
Therefore, Velho warns of the possibility of a shortage of rice in the Brazilian market between the months of November and January and that prices for the final consumer should rise soon given this prospect.
