Harvest status: Despite the current challenging sanitary environment, over 1,200 has have been harvested, dried and stored in our silos. Preliminary dry average yield achieved is above 8 t/has. We are in the process to harvest the last plots (around 400 has) but the crop was still too humid to start (humidity level of 28 to 30% while 26% is targeted). Harvest should be finalized by end of March – beginning of April.

Market situation:

The Brazilian real continued to depreciate to trade above 5.1 against the USD (see chart USD to BRL below). The real has been falling since the beginning of the year to trade now at its historical lowest level due to persistent worries regarding the country’s economic growth, the impact of the coronavirus pandemic and despite central bank efforts to support the currency. The Brazilian situation has a significant impact on the Paraguayan rice market as 90% of its production is exported to Brazil. Early March, we sold 1,500 tons of paddy rice to local mills (deliveries are in progress) for USD 20 per ton more than actual price.

Water level of all rivers, including the Paraguay River (mainstream for grain shipping), are at their minimal level which generate logistic difficulties.

Social isolation is impacting custom services and trucks traffic, so that the delivery of Paraguayan products to Brazil is slower than in normal situation.

For now, we prefer to store our paddy rice in our silos waiting for more stability.