THE TREND IS FOR FIRMER WHEAT PRICES IN BRAZIL IN 2024

Wheat prices in Brazil are expected to be firmer in 2024. This forecast is based on shifts in the domestic supply picture, according to Elcio Bento, an analyst at SAFRAS & Mercado. Following two harvests with exportable surpluses in Rio Grande do Sul, the 2023 output, which will impact the domestic market until mid-August 2024, sustained significant losses due to weather adversity. During the 2022-23 cycle, from August to July, the farmers in RS had grains that surpassed their industries’ needs by around 4 million tons. As a result, they were the main choice of the big national milling hub, Paraná, to compensate for the losses of local production, in addition to moving enormous amounts overseas and to the Brazilian northeast.
Source: Safras&Mercado (*Translated by Ia Niani)