Rice near R$ 90 per sack moves the market.

The price of rice Prices for paddy coffee remain strong in Rio Grande do Sul, supported by competition between domestic and export buyers, as well as expectations surrounding government purchases. In recent days, negotiations aimed at securing shipments have taken place near R$ 90 per 50-kilo bag at the Port of Rio Grande (RS), according to Cepea.

The increased value of operations geared towards the export market encouraged producers to expand the supply of the grain, mainly in regions near the port terminal. However, this movement also increased competition for raw materials and made it more difficult for some Brazilian industries to operate.

According to Cepea, some companies in the domestic market have reduced their purchases due to the difficulty of matching the prices paid in negotiations for export.

The firm prices are occurring precisely at a time when industries are experiencing increased need for raw materials. In August, rice processing in Rio Grande do Sul increased, expanding the demand for the product available on the market.

The trend also reached the retail sector. According to the Research Center, prices paid by consumers increased in August. With exporters and industries competing for available rice and government purchases remaining on the radar of market participants, the market in Rio Grande do Sul maintains a scenario of price support, especially in regions closer to the Port of Rio Grande.