Wheat Price Decline and Import Surge Mark the Market

The wheat market in Brazil is in the off-season and with low liquidity. The retraction of internal negotiations and strong competition with Argentine cereal are pressuring spot market prices. According to information released by the Itaú BBA AgroMensal report, prices fell 2% in Paraná (R$ 78.62/sc) and 4% in Rio Grande do Sul (R$ 70.04/sc) between May and June. Mills are supplied, and producers are waiting for better quotations to negotiate. Imports remain heated, with emphasis on Argentine wheat, which arrived in Brazil at more competitive prices, favored by the appreciation of the real and the extension of retenciones. From January to May, the imported volume totaled 3 million tons — the largest since 2007. In the international scenario, quotations also receded in May but showed a recovery in June, given concerns about the climate in Russia and China, and due to the delayed harvest in the US, which recently began. Planting in Brazil advances in Paraná, with 78% of the area ...