Cepea, December 5, 2019 – The low availability of high quality wheat, the US dollar appreciation against Real and concerns about the Brazilian crop and trades of the Argentinean wheat pushed up wheat quotes in Brazil in November. However, purchasers – who seemed to have stocks – stayed out of the market, constraining price rises.
Between October 31 and November 29, prices rose 5% in Paraná (PR) and 6.5% in Rio Grande do Sul (RS). As regards the monthly averages, quotes increased 2% in PR, to 849.40 BRL per ton in November, while in RS, the average price in November, at 709.98 BRL per ton, was 4.9% lower than that in October.
The strong US dollar is keeping Brazilian purchasers away from imports too. Based on data from Conab (National Company for Food Supply), until November 22, the import parity price for the product from Argentina was at 245.17 USD per ton – for the wheat delivered in Paraná. Considering the average US dollar in November (until Nov. 22), the price of the product imported from Argentina was at 1,013.35 BRL per ton, while in Paraná, the Brazilian wheat was traded at 842.54 BRL per ton in the same period, according to Cepea.
For Rio Grande do Sul, the import parity price for the product from Argentina was at 238.02 USD (983.80 BRL) per ton in November (until Nov. 22), while the Brazilian wheat was traded at 702.15 BRL per ton, according to Cepea.
FIELD – According to Deral/Seab, the wheat harvesting has ended in Paraná, with an average productivity at 2,186 kilos per hectare. Deral indicates that, until Nov. 20, 68.7% of the crops from PR had been traded. In Rio Grande do Sul, the harvesting is ending, with only 2% of the area to be harvested, according to Emater. Most of the wheat already harvested in the state has lower quality.
In Santa Catarina, according to Cepea collaborators, quality is considered good, in general. However, in some regions, the drought at the beginning of crops development and rains at the end reduced quality, which is underpinning prices in that state.