Slow wheat sales can affect export window, say Brazilian producers

Wheat producers based in Rio Grande do Sul have sold a significant portion of the record-breaking 2022 harvest. Nonetheless, some of them are struggling to conclude negotiations with the current prices, which may cause the state not to fulfill its full export potential, said the president of the wheat-producing cooperative FecoAgro, on December 13.

According to Paulo Pires, “producers are not selling and, thus, companies and cooperatives do not sell either.”

“There’s a low number of vessels read to transport the cereal, making us worry about missing the [export] window, as we have until March at most to make it work,” Pires told the press at an online conference.

After March, soybean exports tend to gain space in the market abroad after the oilseed harvest, which limits wheat shipments.

According to Pires, if farmers had taken advantage of previous commercialization opportunities, Rio Grande do Sul (Brazil’s largest wheat producer) would have the potential to export around 1.5 million tonnes per month, or 4.5 million tonnes in total, between December and February.

See below the track record of the volume of wheat (hs 1001) imported by Brazil between Jan 2019 and Sept 2022. The data is from DataLiner.

Wheat imports – Brazil | Jan 2019 – Sep 2022 | WTMT

Source: DataLiner (click here to request a demo)

He estimated that producers sold approximately 2 million tonnes. Despite the lower volume, he believes the state will be able to export “more than 3 million tonnes without worry.”

Still, “it is important for producers to educate themselves that without the export window, we will not be about to sustain the prices.”

Source: Money Times

To read the full original article, please go to: https://www.moneytimes.com.br/com-vendas-lentas-de-trigo-janela-de-exportacao-pode-ser-perdida-diz-fecoagro/

Sharing is caring!