Brazil, traditionally an importer, has set a new wheat export record

Brazil, traditionally an importer, has set a new wheat export record while also increasing the number of imports in the first quarter of the year. This occurs at a time when wheat has become one of the most sought-after foods on the market.

Based on Anec (National Association of Cereal Exporters) data, the wheat export level by Brazil will reach 2.12 million tonnes by March, an increase of 332% compared to 2021.

Based on average daily purchases by Secex (Secretary of Foreign Trade), imports will reach 1.54 million tonnes, 10% below 2021.

The fact that Brazilian wheat producers have adapted to the requirements of some of the main importing countries, combined with a favorable dollar-real exchange rate, is making Brazilian cereal more competitive in Africa, the Middle East, and Asia.

Secex data point to shipments of 290 thousand tonnes to Saudi Arabia and 230 thousand to Morocco in the first two months of the year. With 220 thousand tonnes, Indonesia and Pakistan, with 138 thousand, were the two largest importers of Brazilian cereal in Asia.

The average price of a ton of unmilled wheat and rye exported by Brazil last month was US$ 303, up 12.4 %. According to Secex, imported wheat, on the other hand, was valued at US$ 299.

The price of wheat lost strength in the international market. Falling oil prices and hopes of a soon-to-be-settled armistice between Russia and Ukraine caused commodity prices to retreat this Tuesday (30).

Wheat, the product most affected by the war, was commercialized at a US$ 10 per bushel (27.2 kg) rate on Tuesday, with May contracts closing at US$ 10.14, down 4%. Compared to a year ago, wheat maintains a high of 71%.

The day before Ukraine was invaded by Russia, on February 23, the grain was priced at $8.44 a bushel in Chicago. Wheat prices peaked at $12.94 on March 7 but soon lost steam.

Oil and war continue to make commodity prices volatile. Soybeans fell 1.3% on Tuesday, and corn by 3%. Only coffee, traded in New York, did not fall, with prices stable.

Source: Folha de São Paulo

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