Prices oscillate in August, but end the month on the rise

Cepea, September 3 2019 – Wheat prices oscillated sharply in Brazil in August, but ended the month on the rise. Many purchasers were away from the market, waiting for supply to increase as harvesting starts, which could press down quotes. Sellers, in turn, asked higher prices for the remaining batches, focused on crops productivity and quality in the 2019/20 season, which may be damaged by unfavorable weather.

 

Between July 31 and August 30, wheat prices rose 1.4% in the over-the-counter market (paid to farmers) of Rio Grande do Sul, but remained stable in Paraná. In the wholesale market, quotes increased 1.9% in Paraná and 0.3% in Rio Grande do Sul, but remained stable in São Paulo.

 

FIELD – Brazilian wheat crops are developing well. Dry weather in August concerned wheat growers, but recent rains have brought some relief, since many crops are going through the flowering and fruiting stages, which demand higher soil moisture, crucial for a high production.

 

In Paraná, until the end of August, the harvesting had reached 3% of the area, according to Deral/Seab. Wheat farmers have reported that, so far, quality is lower than the expected and, thus, are waiting to trade the batches from the 2019/20 crop. Still according to Deral/Seab, 55% of the crops are in good conditions, 35%, in average conditions, and 10%, in bad conditions.

 

In Rio Grande do Sul, the harvesting should start this month. In general, growers are monitoring for pests and diseases.

 

(Cepea-Brazil)

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