With well-stocked mills: Wheat trading in Brazil comes down to one-off business

The mills are stocked and should only return with more strength in mid-April. Therefore, they have not shown flexibility in their price offers. “Producers focus their attention on the summer harvest and are not interested in negotiating at the levels offered”, points out SAFRAS & Mercado analyst, Élcio Bento. In Paraná, the average price for FOB inland is around R$ 1,650/ton for purchase. In Rio Grande do Sul the average is R$ 1,425/ton. In the second state, flow via export has lost intensity in recent months. Shipments are for products with sales committed in advance. Current indications at ports have not attracted sellers. “Wheat from other origins, especially Russia and Australia, are very competitive. To leave Rio Grande/RS at the same price as the Russian in the Black Sea FOB, the producer from Rio Grande do Sul would have to negotiate around R$ 1,355/ton inland. The internal market indicates buying interest above R$ 1,400/ton. As internal logistics must be saturated by the ...