The Brazilian wheat market starts March with slowness and distant ends

Wheat

Brazil

Market & Price Trends

Published Mar 12, 2024

Tridge summary

Brazilian wheat producers are facing a significant deficit between national production and milling needs, harvesting only 8.6 million tons out of a potential 11.5 million tons, leading to a national deficit of 7 million tons. This has resulted in increased use of weaker grains and a greater need for purchasing high-quality grains from abroad. Mills are relying on falling international prices to maintain their price inflexibility. Argentina, a major global supplier, has an exportable balance of nearly 10 million tons, making its prices competitive.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Producers, aware that there will be a significant deficit between national production and the need for milling – even in production regions – adopt a defensive position and show little flexibility in their orders. The mills, generally well supplied, look at the drop in international prices and indicate a purchasing interest that is far from the seller's request. When opportunity deals arise, from producers who need to save money and/or open space in warehouses to receive the summer harvest, specific deals are reported. Bento explains that the producer's argument takes into account that, out of a production potential close to 11.5 million tons, the country harvested only 8.6 million tons. Therefore, maintaining the crushing rate of last season (12.6 million tons), the deficit would be 4 million tons. Considering that, of this amount, 3 million tons will not be of sufficient quality for the production of flour (feed wheat), the national deficit jumps to 7 million tons. When this ...

Source: Portal Do Agronegocio