Rice prices have seen a notable decline, dropping nearly 8% since late January 2024.
In Rio Grande do Sul, Brazil’s leading rice-producing state, the price for a 50-kilogram sack fell to R$ 119.10 ($23.82).
This decrease, from January’s R$ 129.20 ($25.84), still signifies a 35.2% increase from the previous year.
The adjustment follows high global prices and reduced domestic output, pushing prices to new highs.
Élcio Bento from Safras & Mercado explains the trend. With over 90% of rice harvested in Rio Grande do Sul between March and April, supply increases lead to price stabilization.
The market adjusts, influenced by domestic harvests and global production figures.
The USDA’s report highlights global rice trends, noting a slight increase in milled rice production to 513.74 million tons for the 2023/24 season.
It forecasts a rise in global rice exports and consumption, with final stock estimates showing slight adjustments.
India, Thailand, Vietnam, Brazil, Indonesia, and China shape global rice markets, influencing supply and pricing worldwide.
Rice price shifts highlight global agricultural market interdependence and local economy impact from domestic harvests.
In short, local production surges shape global market trends and pricing, balancing supply and demand dynamics.