Cold weather causes crop losses, and sellers continue disinterested in trading wheat in BR

Cepea, August 3, 2021 – The low temperatures in the recent weeks caused losses in part of the wheat crops in the Brazilian states of Paraná (PR), Santa Catarina (SC) and São Paulo (SP), majorly those at a more advanced stage of development, when they are more sensitive to severe cold. The weather conditions in the next two months (at least) will be crucial for a better definition of the Brazilian output, since most crops are still at initial and/or intermediate stages of development.


Prices continued on the rise in the Brazilian market in July. Besides the concerns about the weather, corn devaluations and the US dollar appreciation pushed up values too, limiting liquidity. In July, the American currency rose by 4.5%, closing at 5.197 BRL on July 30.


CROPS – In Paraná, losses have been confirmed in some crops, while the conditions of others have worsened, consequences of the frosts in late July. Data from Seab/Deral indicate that, until July 26, 90% of the wheat crops were in good conditions; 8%, in average conditions; and 2%, in bad conditions. In Rio Grande do Sul, data from Emater show that wheat sowing is over in the state.




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