Consultancy points to wheat pressure in the South

The movement of wheat in the country is marked by a high supply in the South and cautious negotiations between producers and mills. According to TF Agroeconômica, in Rio Grande do Sul, units are buying only what is necessary, blending old and new wheat to reduce the average cost and avoiding taking long positions. The consultancy assesses that there is plenty of grain available in the state, which keeps prices contained and is expected to delay a stronger recovery of demand for the months of January to March, a period when freight usually pressures buying decisions. Indications remain at 1020 reais in the interior, 1140 reais in Canoas and Porto Alegre, and 1150 reais in the Serra. TF Agroeconômica points out that the combination of a larger quantity and lower quality has led the market in Rio Grande do Sul to export parity. The FOB price is around 225 dollars per ton, while the FAS in Rio Grande remains close to 216 dollars, above the Argentine price, influenced by protein ...