Brazil wheat exports more than doubled in less than six month

Brazil, one of the biggest wheat importers in the world, is breaking consecutive export records in 2022.

In less than six months, until June 20, the country exported more than twice as much wheat as in 2021: 2.5 million tonnes vis-a-vis 1.12 million tonnes in the whole year.

According to the content director of Canal Rural, Giovani Ferreira, the appreciated dollar and the war between Russia and Ukraine are the main reasons behind such expansion. Together, the two countries are responsible for around 30% of the world wheat export market, corresponding to 210 million tonnes.

Please see below a graph showing the wheat export figures in the first months of 2020, 2021, and 2022. Data are from DataLiner.

Brazilian wheat exports | January – April | 2020 – 2022 | WTMT

Source: DataLiner (click here to request a demo)

“The current market scenario in Brazil is the result of the ar in Ukraine, which, as a side effect, increased the price of cereal on the whole planet,” he says.

With the conflict in Eastern Europe beginning at the end of February, the price of a wheat bushel reached the US$ 12 mark in Chicago. The pre-war level was US$ 8, and, currently, the cereal is priced at $10.

In the domestic market, which depends on the exchange rate variable, prices went from R$95 per bag to R$120 per bag, “which helps explain the heated market,” says Ferreira.

Warning

Despite the exceptional performance in exports, Brazil is currently the world’s fourth-largest wheat importer, with 6.2 million tonnes imported in the past.

The country’s industry consumes, on average, 12 million tonnes of the commodity annually.

According to the content director, in addition to the price factor, the country is relying on a record wheat crop this year.

“The crop is still being planted and depends on the weather to develop. More than 80% of Brazil’s wheat supply is concentrated in the Southern Region, especially in Paraná and Rio Grande do Sul. The expectation is to harvest between 8.5 million and 9 million tonnes. But what if the weather doesn’t help? We may have a supply problem.”

Source: Canal Rural

To read the full original article, please go to: https://www.canalrural.com.br/noticias/agricultura/em-pouco-mais-de-6-meses-brasil-exportou-mais-que-o-dobro-de-trigo-em-relacao-a-2021/

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