WHEAT: BUYER LEAVES THE MARKET WITH UNCERTAINTY ABOUT TARIFF EXEMPTION

The possibility of exemption from the Common Foreign Tariff (TEC) for US wheat imports, announced by the government last week, has left national producers on alert. According to the Center for Advanced Studies in Applied Economics (Cepea), the domestic market already shows signs of weak demand, since many mills have stock. In addition, buyers already have product receipts scheduled at least until the entry of the new crop. In general, some agents consulted by Cepea bet on the revocation of the CET exemption, which would favor the commercialization in the domestic market. Others believe that the exemption will indeed occur and this could cause national prices to oscillate according to import parity. In the midst of this uncertain environment, buyers preferred to stay away from new deals and await official disclosures.

Source: Canal Rural