Brazilian wheat faces devaluation with the arrival of the new harvest

The wheat market continues to face pressure in Brazil with the arrival of the 2025 harvest and unfavorable international conditions. According to a survey by CEEMA, wheat prices have fallen to R$ 65.08/sack in Rio Grande do Sul and between R$ 65.00 and R$ 67.00 in Paraná, the lowest levels since January of this year and April 2024, respectively. The drop is explained by three main factors: accelerated harvest, devaluation of the dollar, and increased external supply. Ukraine expanded its winter wheat area by 9%, while Russia reduced its export forecast by 300 thousand tons, which still remains high at 43.4 million tons. In Chicago, quotations also declined. The bushel closed the week at US$ 5.14, down from US$ 5.19 the previous week. The average for September was US$ 5.13, a slight increase over August but 10% below September 2024. U.S. stockpiles grew 6% year-over-year. Brazilian wheat faces strong international competition and a limited domestic market. Low liquidity and the ...