Brazil: Wheat producer prioritizes summer harvest and the market continues at a slow pace

Published 2023년 3월 17일

Tridge summary

The domestic wheat market in Brazil is experiencing a slowdown with limited operations due to producers' focus on the summer harvest. Those in need of immediate sale to free up warehouse space are the only ones actively participating in the market. Millers are capitalizing on this by negotiating lower prices from those in need of immediate sale. Additionally, millers are prioritizing high-end grains and preferring to purchase wheat at lower prices from Paraná and higher prices from Rio Grande do Sul, adding complexity to the wheat market in Paraná.

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

Original content

Porto Alegre, March 17, 2023 – The domestic wheat market had a week of business restricted to one-off operations. According to the analyst at Consultoria SAFRAS & Mercado, Élcio Bento, producers are focusing their attention on the summer harvest and only those in need of immediate sale to free up space in the warehouses go to the market. The mills are aware of these opportunities, which allow them to negotiate for prices of up to R$100/ton below the indications of those who do not need immediate sales. “Those who don't need to sell, believing in an off-season with better prices, adopt a defensive posture and inflexibility in relation to orders”, adds Bento. On the buying side, in addition to occasional deals at below-market prices, millers give preference to high-end grains. However, the supply of this product is low. In Paraná, producers who need to sell to free up space in warehouses find buyers between R$ 1,600/1,650 a ton CIF mills for payment and immediate removal. For wheat ...

Source: Safras