The month of October proved to be a challenging period for food producers. wheat in Brazil, as adverse weather conditions had a significant impact on the harvest and raised concerns about the quality of the crops. In the leading states in wheat production, Paraná and Rio Grande do Sul, reports of losses in the field due to unfavorable weather have already begun to emerge, as observed by agents consulted by Cepea (Center for Advanced Studies in Applied Economics).
Weather conditions during harvest were marked by excessive rainfall and high humidity, creating an extremely challenging environment for wheat producers. These adverse weather factors not only affected the harvest volume, but also compromised the quality of the crops, creating apprehension among farmers who strived to ensure high-quality wheat.
However, the wheat market experienced an increase in demand. Mills sought to ensure a constant supply of wheat. This was essential for flour production. This growing demand, combined with concerns regarding the quality of wheat due to unfavorable weather conditions, resulted in an increase in cereal prices. Cepea observed this phenomenon in several monitored regions, and those involved in the agricultural industry must closely monitor its influence on the market.
Source: Aline Merladete | agrolink
