This week, all attention in the rice market was focused on the auction for the import of 300 thousand tons processed by the National Supply Company (Conab). After a major legal dispute, the operation took place this Thursday, negotiating 263.3 thousand tons.
For Safras & Mercado analyst and consultant, Evandro Oliveira, market behavior is currently marked by a climate of confusion, uncertainty and discouragement. “The release of the auction intensified concerns in the sector”, he states. “Sellers reported business cancellations due to the expectation of purchasing the subsidized product at lower prices, which had an immediate impact on negotiation dynamics”, he adds.
According to Oliveira, it was not possible to identify direct links between the bidders and the rice production chain. “Several participants from states such as Tocantins, Paraná and Santa Catarina were unsuccessful in their offers”, he reports.
The Conab rice auction controversy
According to the president of Conab, Edegar Pretto, there was politicization of the auction of rice and that he did not expect the lawsuits filed to prevent the operation. According to him, the objective of the auction is to guarantee easy and cheaper access to food for the population and those who acted against it “either did not understand, or found it possible to oppose it”.
The director said that all documentation complies with legislation. “They asked if it wasn’t hasty. It was hasty for the price to rise by more than 19% in one month, as in Santa Catarina. In some regions, it increased by 100%. For this reason, the government needed to act to guarantee food sovereignty and combat hunger. We were absolutely certain of the legality of the operation”, he explains.
In this troubled context, the week saw practically stable prices. Furthermore, the average bag of 50 kilos of rice in Rio Grande do Sul (58/62% of whole grains and payment in cash) remained quoted at R$ 120.73 on the 6th, showing an increase of 0.06% compared to the previous week . Compared to the same period last month, there was an increase of 11.09%. Furthermore, an increase of 48.49% was observed when compared to the same period in 2023.
Source: Crops & Market
