Slow buying of flours and other by-products immobilize wheat milling activities

High wheat inventories are preventing further purchasing on feedstocks to the wheat milling activities. March had shown a very slow pace of flour milling throughout the country. Farmers remain attentive to the domestic harvest, and the storage capacity for the summer crop points out to lethargic consumer markets.

Trade restrictions in several cities and the religious holiday also influenced low market liquidity in Brazil. Despite these, in March, the average price of wheat closed with advances in the cash market (negotiations between companies) at R$ 1,488.78/ton average. A price increase of 1.4% considering Paraná & Rio Grande do Sul origins if compared to February and an expressive 53.8% YoY.