Brazil may increase import of Argentine wheat and drive down prices

Wheat prices remain under pressure in the Brazilian market, in a scenario marked by abundant supply, positive expectations for the current season, and a less favorable exchange rate for exports. A survey by Cepea indicates that the cereal's quotations continue to be weakened, reflecting both internal factors and the increased availability of the product in the international market. According to Cepea researchers, the national supply is today one of the main vectors of the drop in wheat prices. The harvest in major producing regions and the good productivity prospects for this season increase the internal availability of grains. With more product on the market, buyers exert greater bargaining power and push for negotiations at lower levels. Another point that weighs on Brazilian wheat is the behavior of the exchange rate. The recent depreciation of the dollar against the real makes imported wheat more competitive compared to the national product. Given this price relationship, ...