The drop in wheat prices in Brazil reflects a historic harvest in Argentina.

Historic production in Argentina, the main supplier of the cereal to Brazil, is already impacting prices in key states such as RS and PR. Cepea also points to a currency effect in the low scenario. The wheat harvest is advancing strongly in Argentina and is already causing direct effects on the Brazilian market. According to data released by the Bolsa de Cereales on November 27, the crop in the neighboring country was revised upwards and may reach 25.5 million tons – an unprecedented volume that exceeds the previous estimate by 1.5 million tons and sets a new historical record, surpassing the 22.4 million of the 2021/22 season. The expectation of a robust exportable surplus is putting pressure on domestic prices in Brazil. "With the large crop in Argentina, national market agents are already observing a downward trend in prices, also amplified by the appreciation of the Real against the dollar," explain Cepea researchers in a technical note. Drop in prices in southern Brazil In ...