# Increased rice supply and decreased demand may lead producers to sell to feed industries - DatamarNews

> Rio Grande do Sul has finished a rice harvest above 8.5 million tonnes, driven by record yields. Weaker domestic and export demand than in 2020 means producers may sell part of their crop to animal feed industries, which are paying up to R$80 a bag against R$70-77 offered by food processors.

- Date: 2021-07-21 · published 2021-07-21T12:00:00.000Z
- Category: market · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/46156-increased-rice-supply-and-decreased-demand-may-lead-producers-to-sell-to-feed
- Commodities: [Rough Rice](https://feedsoft.ai/c/RICE.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Diversion of Brazilian rice into feed channels adds feed-grain supply and substitutes for corn in mixes, which tends to pressure feed ingredient prices.

## Read by commodity

- CORN: bearish ▼
- RICE: bearish ▼

## Sources

- datamarnews.com: https://datamarnews.com/noticias/increased-rice-supply-and-decreased-demand-may-lead-producers-to-sell-to-feed-industries/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.