Quality of wheat may pressure prices in the medium term

The international wheat market is undergoing a reevaluation of its fundamentals, with potential impacts on supply, demand, and price formation in the coming cycles. According to an analysis by TF Agroeconômica, the lower quality of Argentine wheat this season, more suitable for animal feed than for baking, tends to alter the global flow of the cereal and the composition of flours produced in different regions. This scenario may stimulate an increase in demand for hard wheat from the United States and Russia, used in blends to elevate the standard of flours, which opens up space for price increases in the medium and long term both on the Chicago Board of Trade and in the Brazilian physical market. The assessment considers that this movement should not be immediate, but may gain strength over the next year, especially in countries with high dependence on Argentine produce. In the case of Brazil, where the participation of imported wheat from Argentina is significant, the outlook is ...