Cepea, July 2, 2021 – Agents from the wheat market are keeping an eye on crops. In Brazil and in Argentina, wheat sowing is advancing, and farmers are closely watching out for crops and the weather. In general, wheat crops have developed well in both countries, and the output may set a record in Brazil.
In Paraná (PR), until June 21, wheat sowing had reached 92% of the area estimated for the state, according to Seab/Deral, with 95% of crops in good conditions, and 5%, in average conditions. So far, rainfall has been satisfactory, and the frosts registered in the state did not damage the wheat crops, which are still tolerant of low temperatures. In the report released this month, Seab/Deral revised up estimates for the wheat area in PR to 1.18 million hectares (against 1.14 million hectares last season), and the harvest is expected to total 3.87 million tons, a record.
In Rio Grande do Sul (RS), wheat sowing has surpassed a million hectares, according to Emater/RS, area 13.29% larger than that in 2020. The output in RS is expected to total 2.89 million tons, 37.81% up from that in the previous season.
In Argentina, according to information from the Bolsa de Cereales (Buenos Aires Grains Exchange), 70.9% of the area allocated to wheat crops had been sown until June 23, an advance of 13.5 percentage points in the week. Almost all crops (95.4%) are in normal and excellent conditions.
BRAZILIAN MARKET – Wheat prices are still fading in the Brazilian market, influenced by the dollar depreciation against Real (which favors wheat imports), wheat devaluations abroad and the slow trading pace. Agents from mills signal to have inventories, and some of them are not operating in full capacity. Besides, the good conditions of crops and the favorable weather help to press down values in the domestic market.