Brazil wheat imports skyrocket in February

In February, wheat imports surged in Brazil, driven by the pursuit of superior quality due to limited supply in the domestic market. Data from the Center for Advanced Studies in Applied Economics (Cepea) reveals a substantial increase in international purchases, especially from Mercosur countries, amid adverse weather conditions that hampered the national crop’s development.

Despite many mills reporting well-stocked inventories, demand for premium wheat remains high among active spot buyers. Unfavorable weather during the development of the national crop resulted in a scarce supply of high-quality wheat domestically. Consequently, buyers turned to imports to meet their needs, favoring mainly Mercosur member countries.

“The scarcity of high-quality wheat in the domestic market is prompting buyers to seek the product abroad, where supply is more favorable,” noted a Cepea analyst. “The increase in imports reflects the urgent need to supplement national stocks amid challenging weather conditions that have affected local production.”

The following chart shows Brazil’s wheat export volume month-on-month between January 2022 and January 2024, according to DataLiner data.

Brazilian Wheat Imports | Jan 2022 – Jan 2024 | WTMT

Source: DataLiner (click here to request a demo)

The reliance on wheat imports highlights the vulnerability in Brazil to climate fluctuations and external market conditions. Producers and buyers face the ongoing challenge of ensuring an adequate supply of wheat, especially of top quality, while seeking to diversify their sources of supply and mitigate the risks associated with domestic production.

Source: Agrolink

Click here to read the original text in Portuguese: https://www.agrolink.com.br/noticias/importacoes-de-trigo-dispararam-em-fevereiro_489046.html

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