Brazil’s wheat export rises after record harvest and favorable foreign exchange rates

Brazil, a traditional wheat importer, has strongly expanded its exports of the product in December 2021, having even more shipments already scheduled for January and February. Such a change is the result of a record harvest and favorable exchange rates that are boosting the business.

Rainfalls at key moments for the Brazilian crop, however, reduced the quality of part of the harvested wheat, increasing the exportable surplus that cannot be used locally to manufacture baking flour, even though there is a strong demand abroad in African countries and Asia.

Wheat shipments departing from Brazil doubled by the daily average until the third week of December vis-a-vis the same month in 2020, reaching more than 20 thousand tons per day. According to data from the Secretariat of Foreign Trade (Secex), the total volume exported in the month exceed 300 thousand tons.

Brazil traditionally exports good quantities in December, after the wheat harvest in Rio Grande do Sul, but a record harvest in the state indicates even greater exports. There talks about the country’s wheat shipment reaching historical levels in the 2021/22 wheat commercial year (August/September).

Check the chart below for a comparison of Brazilian wheat exports from 2018 onwards. Data are from DataLiner:

Brazilian Wheat Exports (HS 1001) | Jan to Oct 2018-2021 | WTMT

Source: DataLiner (click here to request a demo)

“We have already reached 2.5 million tons committed for export, an all-time national record,” said analyst Luiz Pacheco, from the T&F consultancy firm.

Source: Money Times

To read the full original article visit the link: https://www.moneytimes.com.br/exportacao-de-trigo-do-brasil-salta-apos-safra-recorde-e-ajuda-do-cambio/

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