Brazil's Conab auctions 91,700 mt of rice

Brazil's food supply and statistics agency, Conab successfully negotiated approximately 91,700 mt of rice through three rounds of Option Contract auctions this month, resulting in 3,396 contracts. If farmers opt to sell to the federal government upon contract expiration, Conab will allocate about Real 162.2 million.

The majority of transactions occurred in Rio Grande do Sul, where producers contracted 58,455 mt, making up 63.75% of the total. Mato Grosso also played a significant role, accounting for 31.54% of the sales with 1,071 contracts for around 28,920 mt. Conab's initiatives aim to bolster rice production across the country.

For the first time, Conab included family farmers in the auctions, leading to contracts for about 5,700 mt of rice, which could result in Real 10.11 million for family farming. The auctions offered Put Option Contracts across several states, with the federal government providing around Real 1 billion to acquire up to 500,000 mt of rice from the 2024-25 harvest.