Wheat in the South: Abundant supplies

The wheat market in southern Brazil continues to be pressured by high supply and buyer caution. According to TF Agroeconômica, in Rio Grande do Sul there are offers at R$ 1,050/t, but no buyers, reflecting the large availability and the low volume exported, which totals only 74 thousand tons, well below the historical average. In dollars, prices for Gaucho wheat are at US$ 215 on wheels and US$ 225 in the ship, higher than the US$ 220 FOB from Argentina. For December, indications in reais fell to R$ 1,180, with the possibility of a 20% discount for feed wheat. Prices paid to producers have also fallen, reaching R$ 68.00/sack in Panambi, marking a drop compared to Paraná. In Santa Catarina, the unharvested crop keeps the local market stalled, and mills seek supply in RS or other states. CIF values reach R$ 1,400, while the price of the stone falls to R$ 69.33/sack in Canoinhas, R$ 63.00 in Chapecó, and R$ 73.00 in Xanxerê. The limited supply and the considered low prices make ...