Low supply of high-quality wheat drives imports forward in Brazil

Brazil’s cereal imports are increasing in response to the limited supply of high-quality wheat in the country. Domestic purchases of the product had reached 383.95 thousand tons by the third week of February, up from 291.63 thousand tons in the entire month of February last year, according to Secex data.

According to researchers at Cepea, although many mill agents appear well-supplied, active spot buyers are seeking wheat of a higher quality. However, unfavorable weather has hampered the development of the Brazilian crop, resulting in increased imports, particularly from Mercosur countries. On the selling side, producers are preparing the area for the upcoming season.

The following chart shows the volume of Brazilian wheat imports (hs 1001) between January 2022 and December 2023. The data is from DataLiner.

Brazilian Wheat Imports | Jan 2022 – Dec 2023 | WTMT

Source: DataLiner (click here to request a demo)

Cepea researchers emphasize that productivity losses observed in recent years and domestic prices operating at their lowest levels since 2020 may discourage wheat planting.

Source: Correio do Cidadão

Click here to read the original news text: https://www.correiodocidadao.com.br/agricultura/baixa-oferta-de-trigo-com-qualidade-no-brasil-eleva-importacoes-avalia-cepea/#google_vignette

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