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Brazil buys more wheat and rice from the United States
Sep, 24, 2020 Posted by Ruth HollardWeek 202039
According to the United States Department of Agriculture (USDA), Brazil bought more North American rice and wheat in the last week. However, as the volumes were relatively small – 7,200 tons – it was possible for Brazilians to keep imports within the fee-free quotas.
Last week, Brazil had already purchased 30,000 tons of North American rice after the government zeroed the Common External Tariff (TEC) for countries outside Mercosur for up to 400,000 tons, valid until the end of 2020.
With the latest imports, the total sales of rice from the USA to Brazil in 2020 already exceed the 35,500 tons imported by the country during the whole of 2010, which was the last of the major cereal negotiations between the two countries. The tariff-free quota is the government’s way of easing rice prices for Brazilian consumers. Despite this, the price of a bag of rice is still at record prices.
In terms of wheat, the Brazilian government exempted a quota of 1.2 million tons tax-free until November, which has also favored the United States. As a result, this week the USDA recorded sales of 3,100 tons of HRW wheat, bringing the total purchases of the product from the US to more than 600,000 tons this year.
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