Record wheat production favors foreign sales and may place Brazil among the 10 largest exporters in the world

Published 2023년 4월 12일

Tridge summary

Brazilian wheat producers were busy with harvesting and preparing for the winter season in March, as demand and prices remained weak both domestically and internationally. Despite the record wheat production in Brazil, it has not significantly impacted the lower availability of wheat in Argentina, Brazil's largest supplier. However, the increase in domestic harvest has boosted foreign sales, potentially making Brazil the world's 10th largest wheat exporter. The USDA predicts a slight increase in global wheat production and consumption for the 2022/23 season, with a slight decrease in carry-over stocks. In Brazil, the absence of buyers led to a decrease in wheat prices, but demand for wheat bran increased in March, while demand for flour remained low, leading to a drop in prices. Preliminary data from Secex shows a decrease in imports and exports in March compared to the same month last year, and the average export price of wheat in March was 6.9% higher than in March 2022.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In March, the focus of Brazilian producers was on harvesting and negotiating the summer crop and preparing for the winter season. Demand, in turn, remained weak. As for prices, they have been falling both in the domestic and international markets. Official estimates indicate that record wheat production in Brazil has been offsetting the lower availability of the product in Argentina, which, it should be noted, is the country's largest supplier of wheat. And the greater domestic harvest has even favored foreign sales of wheat, which should grow compared to the previous harvest, taking Brazil to 10th place among the world's largest exporters of the cereal. These estimates are from the USDA, which also points to world production of 788.9 million tons, 0.7% higher than the February/2023 data and 1.2% higher than that verified in the 2021/22 season. The projection for world consumption rose 0.3% month-on-month, reaching 793.2 million tons, slightly higher than the 2021/22 harvest ...

Source: Opresenterural