Wheat Market Remains Stalled in the South

The wheat market in Southern Brazil continues to face difficulties, mainly due to weak flour demand and large raw material availability, which prevents more significant price increases. According to TF Agroeconômica data, in Rio Grande do Sul, bread wheat from the old crop was traded between R$ 1,350 and R$ 1,380 FOB, with a slight reaction compared to the previous week. Still, the expectation is that prices will rise a little more before the arrival of the new crop, which tends to cause another drop, with a possible recovery only starting in February. Planting in the gaucho state has advanced and now reaches 80%, thanks to dry weather and farmers' high operational capacity. The first business transactions for the new crop were reported by a mill in Paraná, which bought gaucho wheat at R$ 1,200 FOB. Export prices for December are around US$ 230/t, equivalent to R$ 1,276 at the Port of Rio Grande. Despite this, weaker milling and high stocks create a vicious cycle that keeps prices ...