Wheat price in Brazil soars and threatens to impact bread and pasta cost in 2022

Published 2021년 12월 3일

Tridge summary

Brazil's wheat harvest has ended in Paraná, resulting in a 1% increase in production compared to last year, reaching 3.2 million tons. Despite this, the country's reliance on imports to meet its domestic demand of 12 million tons is expected to rise, potentially driving up prices. The global wheat market is experiencing a surge in prices due to adverse weather conditions and a decrease in production in major countries like Canada. This could lead to an increase in the cost of bread and flour in Brazil for 2022. Argentine wheat harvests make up a significant portion of these imports, with a record 19.9 million tons expected from 40% of the cultivated area. However, demand for Argentine wheat is high, and future prices for 2022 are already above US$ 320 per ton (FOB).

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

Original content

The Brazilian wheat crop is already ending. In Paraná, the largest producer of cereal in the country, the harvest has already ended and production reached 3.2 million tons, 1% more than last year, according to statistics from the Department of Rural Economy (Deral/PR). In São Paulo, the weather got in the way, and the wheat harvest should be 250 thousand tons. In 2020, it was 310 thousand tons, which gives a drop of 19%. Even so, Brazil, this year, should reap its biggest wheat crop, projected at 7.9 million tons, increased by productions in the Cerrado and Ceará. Last year, it was 6.2 million tons (up 27%). But to meet the domestic demand for wheat, around 12 million tons, according to information from the Brazilian Association of Wheat Industries (Abitrigo), the country needs to import the cereal from Argentina, Canada and the United States, around 5 million of tons. And this dependence on wheat from abroad could hurt prices next year. On the international market, the price of ...

Source: Economia