Firm prices and possible area increase hearten farmers in Brazil; liquidity continues low

Cepea, March 17, 2021 – Agents in the Brazilian wheat market believe that the higher price levels this season added to the delay of both soybean harvesting and corn sowing should lead to an increase in the area sown with wheat in Brazil. Thus, farmers are focused on crops, and the trading pace continued slow in the first fortnight of March.

 

On the other hand, agents are not sure about the effects of the new social distancing measures (because of the covid-19 pandemic) on the market. Prices, in turn, continued firm in Brazil in the first half of the month.

 

ESTIMATES – Conab (Brazil’s National Company for Food Supply) released new data keeping the estimates previously reported, indicating that the Brazilian wheat area should grow by 2.1% this year, and productivity, by 1.1%. Thus, the output is forecast at 6.4 million tons, 3.3% larger than that in the previous season.

 

IMPORTS – According to Secex, Brazil imported 449.6 thousand tons of wheat in February, 30.2% down from the volume imported in January and 14.5% less than that from Feb/20. Of the total volume imported last month, 84.2% came from Argentina; 11.32%, from Paraguay; 4.4%, from the United States; and 0.1%, from Uruguay.

 

(Cepea-Brazil)

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