RICE/CEPEA: Seller Withholding Keeps Market Liquidity Low
According to CEPEA, rice trading in Rio Grande do Sul, Brazil, has been limited due to seller withholding, holidays, and anticipated official auctions. Despite recent price increases, farmers believe current levels do not adequately cover production costs, leading to reduced supply and persistently low market liquidity.
University of São Paulo Research Center
**RICE/CEPEA: Seller Withholding Keeps Market Liquidity Low**
According to a report by CEPEA (Center for Advanced Studies on Applied Economics) on April 8, 2026, the market for paddy rice in Rio Grande do Sul, Brazil, has seen limited transactions recently. This is primarily due to sellers holding back their stock, coupled with specific factors such as the Good Friday holiday and the anticipation of official auctions, all contributing to reduced market liquidity.
Despite recent price increases, producers consulted by CEPEA generally believe that the current price levels do not adequately compensate for their production costs. This sentiment has restricted the entry of new rice batches into the market. Such behavior is typical during periods when prices are still seeking a new equilibrium, leading to a reduction in effective supply, even as the harvest progresses.
On the demand side, although there is a need for replenishment, buyers are currently purchasing only what is necessary, avoiding large-scale accumulation. This cautious purchasing attitude further dampens market activity, keeping overall transaction volumes at a low level.