Cepea, May 3, 2018 – Wheat sowing has started in some regions of Paraná (PR) surveyed by Cepea. However, the dry weather in that state has been concerning growers, since it may delay the activity. In northern and western PR, where fieldwork usually starts in April, worries are bigger, since the weather is forecast to continue dry in the coming weeks. Most wheat growers from that state are waiting for moisture to increase to advance with sowing.
Late in the month, wheat growers from some cities in Paraná decided to halt sowing due to lack of rains. According to data from Deral/Seab, until April 23, activities had reached only 1% of the state area. Deral/Seab also indicates that the 2018 wheat area may total 1.04 million hectares in Paraná, 7% larger than that in the season before. Yield may increase by 37%, to 3.16 tons per hectare, leading to an output at 3.29 million tons (+48%).
In Rio Grande do Sul, activities should start in May, but agents consulted by Cepea are still in doubt regarding the area allocated to wheat. On the one hand, the growers who get higher remuneration may increase sowing, but, on the other hand, low liquidity compared to other grains tends to reduce it.
PRICES – Wheat quotes rose in the Brazilian market in April. In some regions, such as northern, western and southwestern Paraná, as well as in Ponta Grossa, prices reached the highest levels in the year, in nominal terms. In Rio Grande do Sul, higher quotes were observed in Ijuí, Passo Fundo and Santa Rosa. Cepea collaborators believe these price rises were linked to the wheat sowing intentions from cooperatives, in spite of weather uncertainties – despite low liquidity, cooperatives increased bidding prices, aiming to encourage sowing activities this season.