Wheat flour is expected to rise in Brazil, with the high price of grain

Published 2021년 11월 16일

Tridge summary

The National Supply Company (Conab) has lowered its forecast for Brazil's wheat crop by 500 thousand tons, now projecting a record harvest of 7.688 million tons for the 2021/2022 season. This reduction, while maintaining the status of a record harvest and a increase from the previous year, brings no relief to mills that are already struggling with rising wheat prices and challenges in passing on costs to consumers. Wheat prices have surged by 25% this year, contrasted with stagnant transfer prices, and mills face pressure to adjust as they operate with a lag amidst rising costs and limitations. The article also touches on the potential impact of genetically modified wheat flour in Brazil and explores the challenges of price adjustments in a market influenced by international prices, exchange rates, and competing products.

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Original content

The National Supply Company (Conab) reduced the estimate for the Brazilian wheat crop by 500 thousand tons. In the report referring to the 2021/2022 harvest, released on Thursday (11/11), the harvest forecast rose to 7.688 million tons. The previous one, from October, was 8.190 million. Even with the reduction, the harvest should be record and higher than last year (6.245 million tons). But it shouldn't represent a relief, since the price hasn't gone down, as it happens during harvest time in the southern region, which produces 90% of the national wheat and has already harvested more than 60% of the crop. Wheat prices are on the rise. And Conab reduced the forecast for the Brazilian crop by 500 thousand tons (Photo: Jaelson Lucas/AEN) The reduction in the estimate increases the pressure on Brazilian mills, which have been working with tight margins since 2020 and are facing difficulties in passing on the increases in the cereal. According to the Center for Advanced Studies in ...

Source: Agroinforme