Sowing ends in PR and RS; prices have opposite behaviors among the regions surveyed

Cepea, August 3, 2020 – Wheat sowing ended in southern Brazil in July, and the favorable weather is heartening agents about this season’s production. In Paraná (PR), crop conditions are better than that in the last three crops. Growers have been focused on the development of the new wheat crop, and deals were sporadic in the Brazilian market in late July. In Argentina, weather issues were concerning wheat growers.

 

CROPS – Wheat sowing ended in Paraná and, according to Seab/Deral, 90% of the crops were in good conditions, 8%, in average conditions, and 2%, in bad conditions by the end of July. In Rio Grande do Sul (RS), the dry weather favored the end of wheat sowing, according to data from Emater.

 

IMPORTS – Until the third week of July, Brazil was importing 20.8 thousand tons of wheat per day, on average, against 24.3 thousand tons in July 2019. Imports prices were around 223.90 USD per ton (FOB) in July, 2.2% lower than that in the same period last year (228.90 USD/ton).

 

The final decision about the tariff-free import quota in Brazil increased the number of wheat trades with Russia. According to the Russian consulting company for agribusiness research SoyEcon, in July, Russia exported at least 70 thousand tons of wheat from the 2020/21 season to Brazil. Still according to SoyEcon, in the 2019/20 season, Brazil imported 90 thousand tons of wheat from Russia, mostly traded before this decision.

 

PRICES – Wheat prices increased in many of the regions surveyed by Cepea in July, primarily in the wholesale market (trades between processors). However, in other areas, quotes dropped. The upward trend of prices was underpinned by the current low supply in Brazil, while the devaluations were influenced by some sellers’ attempts to sell the inventories remaining from last season (at lower prices).

 

(Cepea-Brazil)

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