Brazil: Despite low liquidity, wheat prices rose in May

Published 2021년 6월 8일

Tridge summary

In May, the Brazilian wheat market faced low liquidity due to decreased demand, with only wheat bran sales seeing a slight increase due to high corn prices. There was a lack of sellers as they focused on growing the new crop. Despite lower domestic demand, the available wheat is expected to run out before the harvest of this year's crop, leading to more attractive wheat imports from Argentina and Paraguay due to the devalued dollar. Preliminary data shows that 591.03 thousand tons of wheat were imported in May, a 20.90% increase from the same month last year, and the average price of wheat in Brazil increased by 40.9% to 5.9% from the previous month.

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

Original content

In the analysis of the situation in May, analysts at the Center for Advanced Studies in Applied Economics (Cepea/Esalq/USP) report that the domestic wheat market continued with low liquidity, due to lower demand for the cereal. "Many mill agents proved to be supplied and reported that the demand for flour was weak" According to them, only wheat bran sales were a little more heated, in view of the high price of corn, a substitute for animal feed. "On the supply side, sellers stayed away from the market, focused on growing the new crop." (Photo: Reproduction / Cereals Exchange) The Cepea researchers note that despite the lower domestic demand, the wheat available in the country should not be enough to supply the market until this year's crop is harvested. "The devaluation of the dollar in May made wheat imports from Argentina and Paraguay more attractive than buying cereals in the Brazilian market." They recall that preliminary data from Secex, relating to the 21 working days of ...

Source: Agroinforme