With losses in corn crops, demand for wheat bran increases and boosts prices in BR

Cepea, August 16, 2021 – The losses estimated to both second crops of corn and some areas with wheat in Brazil, caused by low temperatures and frosts in July, have been confirmed. This scenario is expected to sharply reduce corn supply in the Brazilian market, which is already leading agents to increase the demand for wheat by-products, which substitute corn in feed. Thus, prices for wheat bran and wheat grain are currently on the rise in Brazil.


Cepea surveys show that, in July/21, the monthly average for wheat bran in bulk was 84% higher than that a year before; for bagged wheat bran, the monthly average increased by 78.5% in a year’s time.


CROPS – In Paraná, the low temperatures from late July damaged some wheat crops. According to data from Seab/Deral, until August 2, 64% of the wheat crops in the state were in good conditions; 28%, in average conditions; and 8%, in bad conditions. In Rio Grande do Sul, as most crops are still in the first stage of development, the low temperatures from late July did not damage most of them, according to information from Emater.


IMPORTS – According to data from Secex, in July/21, Brazil imported 534.83 thousand tons of wheat, 1.1% less than that in June, but 5% more than that in July/20. Of the total volume imported, 82.64% came from Argentina; 9.63%, from Uruguay; and 7.73%, from Paraguay.





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