The values of wheat bran and flour have been recording sharp drops in most regions monitored by Cepea. For bran, the declines are linked to the devaluation of wheat grain, the greater supply of the derivative – due to the increase in processing – and the lower demand for the product from the feed industries, due to the improvement in pasture conditions. Furthermore, according to Cepea employees, the drop in corn prices also influences the devaluation of wheat bran.
In the flour market, prices have been pressured by slow sales. According to mill agents, buyers purchase the derivative only when necessary, as consumption of the final products continues without significant reaction. Furthermore, the drop in wheat prices and the good supply of this raw material encouraged small mills that were stopped to resume processing. Therefore, these agents are more flexible and sell flour at lower prices, especially in the South region.
Source: Cepea
