Wheat Continues Under Pressure in the South

According to TF Agroeconômica, the wheat market in Southern Brazil has again registered a decline this week, with a drop of 0.38% daily and 1.01% monthly in Rio Grande do Sul. The quotation for old crop bread wheat reached R$ 1,380.00 FOB, but mills have been retracting after new purchases, reflecting weak flour demand. The large availability of raw material, combined with reduced milling and prolonged stocks, prevents increases and contributes to a vicious cycle of retraction in the sector. In the new Rio Grande do Sul crop, the first transactions occur in the range of R$ 1,250 in the interior, especially in the northern part of the state, while buyers try to pay R$ 1,200 – a value not yet accepted. In the external market, export prices for December revolve around US$ 230/t at the Rio Grande port, which, when converted, is equivalent to R$ 1,278 at the port and R$ 1,128 in the interior, making it economically unfeasible. The stone price in Panambi remained at R$ 70/sack. In Santa ...