Frosts in Brazil and drought in Argentina should lower crops productivity

Cepea, September 3, 2020 – The sharp temperature decrease in southern Brazil in the second fortnight of August along with frosts and high rains should lower the productivity of wheat crops. Total damage has not been assessed yet, but productivity is estimated to decrease in the three states in southern Brazil (Paraná, Santa Catarina and Rio Grande do Sul). In Argentina, in turn, the drought is concerning wheat farmers and compromising crops productivity.

 

According to data from Seab/Deral, until August 26, 73% of the wheat crops in Paraná State (PR) were in good conditions, 20%, in average conditions, and 7%, in bad conditions. In Rio Grande do Sul (RS), according to data from Emater/RS, it is still early to assess the damages on wheat crops.

 

In Argentina, according to the Buenos Aires Grain Exchange (Bolsa de Cereales), of the crops sown, 44% are in normal conditions, 38%, from regular to bad conditions, and 18%, in excellent/good conditions. As for hydrous conditions, 62% are from regular to dry and 38%, in great conditions.

 

BRAZILIAN MARKET – As wheat farmers were focused on the supply from the new season and assessing the damages of the cold front on crops, deals were sporadic in the Brazilian market in the second half of August, with stable prices and agents waiting for the new crop to arrive at the market. According to data from Seab/Deral, until August 31, anticipated deals had reached 15.7% of the volume forecast.

 

(Cepea-Brazil)

 

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