Brazil should maintain wheat area expansion in 2023 and production may exceed 12 million tons

Published Mar 24, 2023

Tridge summary

Brazil is set to increase the cultivation area for wheat in the 2023/24 season, reaching 3.465 million hectares, a 5.1% increase from the previous season, due to favorable weather conditions, lower production costs, and competitive prices. This could result in a production of over 12 million tons, surpassing the previous harvest. The main producers, Paraná and Rio Grande do Sul, are expected to see a 4.5% and 5% increase in area, respectively. However, the quality of the crop could be affected by heavy rains during the harvest period. The article also discusses the impact of the conflict in Eastern Europe and the drought in Argentina on the global wheat market.

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

Original content

Porto Alegre, March 24, 2023 – Brazil should continue expanding the area to be cultivated with wheat in 2023. With favorable weather conditions, Brazilian production could exceed 12 million tons. The first survey of planting intentions for the 2023/24 wheat crop signals a new increase in area. Land covered with wheat crops should reach 3.465 million hectares, an increase of 5.1% compared to the 3.297 million hectares of the previous season, said SAFRAS & Mercado analyst, Elcio Amarildo Bento, during the 5th CROP Agri Week. The main factors identified as motivating a greater investment in wheat are the delay in the soybean harvest, the lower production cost and the consequent expectation of better margins due to the maintenance of firm prices. In regions where wheat competes with safrinha corn, the soybean delay left the corn planting window tight. Thus, many producers will opt for the winter cereal. This should happen in Paraná. However, the state has a particularity: off-season ...

Source: Safras