With sellers away from the market, prices continue on the rise in Brazil

Cepea, October 16, 2020 – Prices for wheat grain and by-products increased in Brazil in the first fortnight of October, boosted by sellers, who were away from the market. This scenario was observed despite the harvesting in Paraná (PR) – data from Deral/Seab indicate that, until October 13, activities had reached 73% of the state area. In Rio Grande do Sul (RS), crops started to be harvested, and the few deals closed in the state relate to the product remaining from the previous season.


In general, Cepea collaborators fear that the supply of high-quality wheat may be low this season, due to the weather issues in the past months. Still, the report released by Conab (Brazil’s National Company for Food Supply) has positive estimates for Brazilian wheat crops. In Paraná, estimates for the average productivity are still satisfactory, while in Rio Grande do Sul, frosts and unstable rains have reduced crops’ productive potential – still, the output in RS should be higher than that last year.


According to Conab, compared to that previously reported, wheat area and production should both grow by 0.3%, to 2.334 million hectares and 6.833 million tons, respectively. Exports are estimated at 700 thousand tons.


Data from Seab/Deral indicate that, until October 5, 75% of the crops sown in Paraná were in good conditions, 21%, in average conditions, and 4%, in bad conditions. In Rio Grande do Sul, according to Emater, 2% of wheat crops had been harvested until October 8.


WHEAT IMPORTS – According to Secex (Foreign Trade Secretariat), in September, Brazil imported 466.5 thousand tons of wheat, 17% less than in August and 5.2% down compared to that in September/19. Of the total volume imported last month, 53.2% came from Argentina, 21.6%, from the United States, 10.1%, from Russia, 7.2%, from Paraguay, 6.9%, from Canada, and 0.4%, from Uruguay.





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