Brazil is expected to expand domestic production of wheat by 300,000 tonnes in the 2020/21 harvest, according to a report on the estimate of supply and demand released this Thursday (6/11) by the United States Department of Agriculture (USDA). With that, the country would reach 5.5 million tons. The quantity, however, is not enough to supply the domestic market. The country is largely dependent on imports, as consumption is around 12.5 million tons. For this reason, Brazilian industry regularly purchases raw materials from the United States, Russia, Canada and, mainly, Argentina due to the free trade agreement between Mercosur countries. According to the USDA, Argentina should increase its production by 1.5 million tons, to 21 million, which results in greater availability for buyer countries such as Brazil.
Source: Revista Globo Rural