Brazilian mill pays attention to new reduction in Argentina's wheat harvest

The Black Sea grain export agreement was renewed between Russia and Ukraine for the next 120 days. Thus, despite the war in the region, Ukraine will continue to sell wheat and other agricultural products internationally. This scenario put pressure on the cereal's external values.

Despite this, Brazilian agents consulted by Cepea are attentive and concerned about the context in Argentina, the largest supplier of wheat to Brazil. In a new estimate, the Rosario Stock Exchange again reduced Argentine production in the 2022/23 season, to 11,8 million tons. Productivity is expected to be the lowest in 15 years.

It is worth remembering that the last harvest was a record in Argentina, with production of 23 million tons. As for prices in Brazil, after weeks of falling, wheat prices rose again on the over-the-counter (producer) market.