Wheat farmers in the main Brazilian producing regions are on alert due to the weather conditions. After all, in Rio Grande do Sul, Emater reports that, as the harvest progresses, the initially expected quality and productivity are declining, due to the rainy weather.
Furthermore, in Argentina, an important producer of wheat, the drought that affected part of the crops in the current season reduced local production, which should limit the volume available for export. Therefore, the situation in the wheat market is challenging, both in Brazil and Argentina.
However, it is important to highlight that, despite the climatic difficulties, wheat farmers continue to monitor the situation closely and seek solutions to mitigate negative impacts. Later, we will be able to have a better understanding of the effects of this situation on wheat supply chains.
According to the recent estimate released by the United States Department of Agriculture (USDA) this month, wheat production in Argentina is expected to total 14.5 million tons, representing a reduction of two million tons compared to the October forecast. The current scenario is affecting wheat prices in Brazil. Agents consulted by Cepea predict a continuous recovery movement in the coming weeks. This is due to the influence of these factors on the wheat market in Brazil, resulting in optimistic expectations.
Uncertainty regarding the Argentine climate and production is generating volatility in the market, since wheat is a fundamental component in the food and industrial chain. Brazilian wheat farmers are attentive to climate developments. They also follow international market trends. Everything to make informed decisions about the harvest and prices.
Source: Aline Merladete | agrolink
