Wheat: stability in Brazilian prices

Wheat prices showed strong volatility in the week, reflecting the climatic impact on major producing regions and market expectations. According to TF Agroeconômica, factors such as frost in Argentina and drought in the U.S. winter wheat areas sustained the price recovery on the Chicago Board of Trade (CBOT), while increased Russian exports and the good French crop limited further gains, establishing technical resistance at $535 for the ZWZ2025 contract. In the Brazilian market, prices stabilized after weeks of decline, with wheat being traded around R$ 1,050/t FOB in Rio Grande do Sul and R$ 1,150/t in Paraná. The consultancy warns, however, that a potential drop in quality in the Rio Grande do Sul crops may pressure local prices, while Paraná wheat tends to gain value in the short term. Depending on the severity of the losses, increased use of imported wheat could sustain prices in the long term. Among the bullish factors, rainfall risks during the harvest stand out, which can ...