Brazil: Wheat dilemma goes through price, investment and market

Published 2020년 10월 20일

Tridge summary

Wheat prices in Paraná have reached record highs, leading to profitability for farmers despite weather challenges, with a harvest of 3.3 million tons, a 55% increase from the previous year. The appreciated dollar and increased global demand have contributed to the price surge, making wheat more valuable for food security. However, despite these advantages, wheat cultivation in Paraná is struggling due to its low profitability, with many farmers ceasing to plant it due to the cost of production not being met by the prices offered by mills. This situation indicates a decline in interest in wheat farming in the region, despite the potential for profit in the current market.

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

Original content

Wheat broke price records, marking a position different from that used by the Paraná farmer, who this season can dream of something he has not seen in culture for a long time: profitability. Despite the bad auspices of São Pedro, such as the widespread drought and the frost that hit some crops in the final stretch of development in the West and Southwest regions, the indicators point to a harvest of 3.3 million tons, a volume 55% higher than that of previous harvest. But what really fills growers' eyes is the price. This season, the appreciating dollar allowed cereal prices to reach expressive values in reais, with the bag sold in Paraná reaching a peak of R $ 77 in May (price of lots measured by the Center for Advanced Studies in Applied Economics [Cepea The amount paid in the over-the-counter market by the State Secretary for Agriculture and Supply [Seab] is slightly lower). Just for comparison, in the same month of 2019 the bag of cereal was around R $ 50, according to the same ...

Source: Cnabrasil