With the sharp increase in wheat prices in Chicago, which today has already exceeded US$ 5.80 per bushel for the December 2017 contract, it would be possible to obtain R$ 795 per ton or R$ 48 per bag of the new harvest in several Brazilian marketing centers. The projection is from Consultoria Trigo & Farinhas.
“We are recalculating the net values possible to obtain for the new wheat crop in Brazil, which will be harvested between next August and December. And why isn't this price put on the stones of cooperatives and cereal producers? Because no exports were made, the market was not prepared for this moment and is missing this opportunity”, points out T&F.
The prices offered to farmers today, around R$ 32 in Rio Grande do Sul and R$ 34 in Paraná, are around 29% lower than exports would offer. According to the Consultancy, these are the values that the Brazilian domestic market allows to offer – and yet they are causing financial problems for the mills, because they are far above what they can pass on to the flours.
“With the possibility of reduced demand and low prices in the domestic market, the solution is to promote the reduction of stocks via the export market. And this time, prices are so high that we don't need the government, but a leader who simply does what needs to be done. And there are several people with the power to do this”, says T&F senior analyst, Luiz Carlos Pacheco.
“If it is not possible to sell physically (for export or the domestic market), it is always possible to hedge in the futures markets, which is the easiest and safest way and is always available. In it, you can act with any quality, even if the wheat is only used for forage, because it would add R$ 165/tonne or R$ 10.00/bag to domestic market prices”, he concludes.
Source: Agrolink
