With favorable weather, wheat sowing advances in Brazil

Cepea, June 2, 2020 – Wheat sowing was advancing in southern Brazil in late May, favored by the weather. According to Cepea collaborators, it rained in important wheat-producing regions, which improved soil moisture.

 

According to a survey from Seab/Deral, until the end of May, wheat sowing had reached 63% of the area estimated for Paraná, with 71% of the crops in good conditions, 24%, in average conditions, and 5%, in bad conditions.

 

In light of that, production is estimated to be high in Brazil. Deral has revised up production estimates to 3.537 million tons, a staggering 65% up compared to that in 2019. The area allocated to wheat is predicted at 1.09 million hectares, with an average yield at 3,244 kilos per hectare.

 

For Rio Grande do Sul, weather forecasts are positive for the crop, and growers are heartened about the perspective of higher prices.

 

Meanwhile, the low wheat supply in the Brazilian market and firm demand kept domestic prices and wheat imports high in May. According to data from Secex, until the third week of May, the daily average for wheat imports was at 20.1 thousand tons, against 18.4 thousand tons in May 2019. Imports prices have been around 221.80 USD per ton, FOB, 6.1% down compared to that in the same period last year.

 

(Cepea-Brazil)

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