Wheat market in southern Brazil shows stagnation

Published 2024년 12월 13일

Tridge summary

The wheat market in Brazil's Southern Region is experiencing stagnation due to price variations and low supply. The estimated wheat harvest in Rio Grande do Sul was 3.75 million tons, falling short of projections by 150,000 tons. The local market remains inactive with no new demand from mills in December, and negotiations for January have not yet begun. Mills are offering prices between R$1,250.00 and R$1,300.00 CIF, but sellers are expecting higher prices. The market is further challenged by the high cost of flours compared to the raw material. Prices paid to producers vary by region, and the market stagnation is further exacerbated by high export logistics costs.

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

Original content

The wheat market in the Southern Region of Brazil remains stagnant, with price variations and low supply impacting negotiations. According to data from TF Agroeconômica, the estimated wheat harvest in Rio Grande do Sul, finalized by Emater-RS, was 3.75 million tons, below the projections of 3.9 million tons. The harvested area totaled 1,322,167 hectares, with an average productivity of 2,839 kg/hectare (equivalent to 47.3 bags per hectare). Although the harvest has been completed, the local market remains inactive, with no new demand for mills in December, and negotiations for January have not yet materialized, with indicative prices between R$1,250.00 and R$1,300.00 CIF. In Santa Catarina, sales also remain slow, due to the low demand for flour. Mills are offering prices of around R$1,350.00 CIF for deferred wheat, but there is resistance from sellers, who are expecting higher prices. The difficulty in selling flours that are compatible with the costs of the raw material has ...

Source: Portal Do Agronegocio