Wheat prices in the Brazilian market are sustained, in line with the seasonality of the crop itself, according to the Center of Advanced Studies in Applied Economics (Cepea). The benchmarks measured by the institution began the month of April in high, after ending March with devaluation. The benchmark based on the Paraná market closed at R $ 901.22 per ton early in the week, up 0.16% from the last day of March. In the comparison table, the quotation found in Rio Grande do Sul was R $ 813.52 per ton, appreciation of 1.29%. In a note, the researchers point out that the planting season of the new crop is getting closer as the summer harvest progresses. Producers have already defined the area to be sown, especially in Paraná. The mills indicate that they are supplied and only evaluate the market for future purchases of raw material, which discourages the demand for the grain. The Cepea researchers also point out that, in some states, domestic prices were higher than export parity, even with the dollar at higher levels. The institution’s surveys in some states of Brazil detected higher values not only in the over-the-counter market, paid to the producer, but also in the lots, the negotiation between companies. The national wheat market also expects the effects of the import quota of 750K tons of cereal without tariff, as announced by President Jair Bolsonaro during his visit to the United States. The Brazilian Wheat Industry Association (Abitrigo), which represents the mills, believes in more competition, which may benefit mills in their search for better prices for the raw material.
Source: Revista Globo Rural