Harvesting is advancing, but lack of farmers in the market keeps prices on the rise in BR

Cepea, September 16, 2020 – In the first fortnight of September, the harvesting of wheat crops was stepping up in Paraná, the major wheat-producing state in Brazil – data from Deral/Seab indicate that, by Sept. 15, activities had reached 11% of the state area. Still, many farmers were away from the market, which pushed up prices for wheat grain and bran in the domestic market – in some regions, quotes for this by-product hit record levels (nominal terms) in the series of Cepea. Besides, agents fear that the supply of high-quality wheat may be low this season.


Although farmers are concerned about crops quality, a report from Conab (Brazil’s National Company for Food Supply) released this month has positive estimates for wheat crops in Brazil: the area allocated to wheat this year should be 14.1% larger, totaling 2.33 million hectares, and supply is forecast at 6.8 million tons, 32.5% higher than that in 2019.


BY-PRODUCTS – Deals for wheat flour were sporadic in the Brazilian market in the first half of September, and the agents consulted by Cepea reported that, despite the harvesting, mills are still working with inventories. In this scenario, prices fost most types of wheat flour were firm in that period. For wheat bran, demand was firm, keeping prices high. In Ijuí (RS) and in Passo Fundo (RS), prices (bagged and in bulk) hit nominal records in the series of Cepea, which started in 2006 and in 2013, respectively.


CROPS – In Paraná, the volume harvested in the second week of the month totaled 250 thousand tons, enough for a week of consumption in Brazil, according to Deral/Seab. Until Sept. 8, 66% of crops were in good conditions, 25%, in average conditions, and 9%, in bad conditions. According to the weekly report from Deral, the drought in Paraná is affecting the productivity of the crops already harvested.





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