Brazilian Wheat Industry Association: Flour prices are likely to rise as the dollar rises

Published 2024년 12월 25일

Tridge summary

The Brazilian flour market is expected to be affected by the significant increase in the exchange rate of the US dollar against the real, with wheat and flour prices likely to rise due to higher import costs. This is further compounded by challenges in the Brazilian wheat industry, such as poor harvests due to excessive rainfall and bad weather, which have led to a 62% increase in wheat imports from January to November of this year compared to the previous year. The industry expects to see nearly a 9% increase in grain imports in the 2024/25 season due to climate issues. The association believes that these factors, along with the appreciation of the US dollar, will inevitably lead to an increase in wheat flour prices.

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Original content

Brazilian website "g1.globo" reported that the association pointed out: "The sharp rise in the exchange rate of the US dollar against the real will directly affect the national flour market." Rubens Barbosa, executive chairman of the association, believes that the rise in the exchange rate of the US dollar against the real "has already had an impact on wheat and flour prices, and this impact will continue." However, the association did not disclose the expected increase in flour prices. As of the 23rd, the exchange rate of the US dollar against the real has risen by nearly 28% in the past year. At around 3:50 p.m. that day, 1 US dollar was equivalent to 6.19 reals, slightly lower than the historical high reached last week, that is, 1 US dollar was equivalent to 6.26 reals. The association pointed out that in addition to the recent increase in the exchange rate of the US dollar against the real, which has increased the cost of some import industries, the Brazilian wheat industry is ...

Source: Foodmate