Difficulties in the harvest drive grain prices up. In Uruguay it is seen as good news, although the weather conditions are also worrying.
The risk in the rice harvest in Brazil boosts the prices of the grain that Uruguay also exports.
The floods in Brazil put 150,000 hectares of rice in the northern country at risk, a situation that also affects the prices of grain, of importance in agricultural exports of Uruguay.
The devastating effects of The boy in the south of Brazil and, mainly, in the state of Rio Grande do Sul, also affect the crops of one of the most important producers in the region. In that sense, and although the northern country has collected 82.9% of the rice grown in this harvest, there are still 150,000 hectares that are at risk of being lost due to floods.
Yes ok Uruguay there is no opportunity to compensate for the lack of Brazilian production in the international market – in fact, the threatened area in Brazil is equivalent to that of the entire cultivated area in the national territory, with a potential of between 1.2 and 1.3 million tons, according to Blasina y Asociados—; The eventual outcome in the Brazilian fields could tip the balance in terms of prices for this grain.
A rising price
The harvest in Rio Grande do Sul was already significantly delayed compared to previous years, delayed by the previous intense storms that took place during 2024, even before the most recent ones.
With these difficulties, the price of rice It had been rising, although only this Friday it exceeded $21.10 per bag for the first time since February.
He Rio-Grandense Rice Institute (IRGA) It estimated a yield of 8,612 kilos per hectare for the state today under water, a figure that will continue to decrease due to the consequences of climate effects. Given this expectation that the projection of the rice harvest will continue to be reduced in the main Brazilian state that produces this grain – thus reducing the available supply – it is expected that the value per bag will continue the upward trend.
In Uruguay, meanwhile, 14% of the area remains to be raised, some 22,000 hectares, in what has already become the most laborious and extended in time of the last four harvests, also due to climatic conditions. It is the equivalent of about 200,000 tons considering yields within the average of the last five years, close to 9,000 kilos.
According to the latest report of the Rice Growers Association (ACA) On May 2, the year unfolds as “very difficult at an operational level but with yield results within the average of the last five years and generally good grain qualities.” This projection could be improved if international prices improve, although there is still concern among local producers that the entire area can be harvested to close the 2023/24 harvest in the best possible way.
Source: Ambito
