São Paulo records a drop in wheat production in the 2021 harvest

The figures for the 2021 wheat harvest in the state of São Paulo show a production volume below that expected by the grain Sector Chamber in the state, according to the last meeting held on the morning of Wednesday, November 24th.

According to the report of the Cooperatives that attended the meeting, promoted online, wheat production in São Paulo should be around 250 thousand tons, a volume well below the sector's prospects, which started the year with indications of a harvest record in the state.

“The number we calculated, based on the information collected at the meeting, is below what we expected. A few years ago, our investigation showed that São Paulo's harvest is greater than indicated by Conab, but in 2021, with the reports collected here, I believe that we will have a total very close to that published by them, or even lower, in case review”, says the president of the São Paulo Wheat Sector Chamber, Victor Oliveira.

Productivity was also greatly impacted, showing a considerable drop, caused by changes in the climate throughout the wheat production cycle. “This result is the result of a series of adverse weather conditions, characterized by a very long drought after planting, in the months of April and May, followed by a very severe frost, at the end of July, which reached an important stage in the development of wheat and Finally, rain during the harvest”, explained Oliveira.

Despite a lower volume than expectations, São Paulo's wheat harvest has already been almost entirely liquidated, with only a few stocks left in cooperatives or small areas that are in the final harvest phase “We believe that, by the beginning of 2022, the The volume of wheat produced in the state will be fully commercialized, which reinforces the quality of the cereal produced here and the consumption potential of the São Paulo milling sector, which is the main destination for production in the fields of São Paulo”, highlights the president.

This scenario of possible growth in São Paulo's grain production was highlighted in the presentation by Sodrugestvo's wheat and corn trader, Douglas Araújo, who highlighted the high demand for the cereal by São Paulo's mills, a great space for increasing production in the state.

“This year's numbers show that it returned to the top of the rankings of the most wheat importing states in Brazil, surpassing Ceará, in this year 2021. The smaller wheat harvest from São Paulo and the lower competitiveness of national wheat in the state are factors that may explain this change".

The trader also presented at the meeting an overview of the global wheat market, highlighting that, in general, some of the most important wheat exporters, such as Canada and Russia, presented losses in cereal production in this year's harvest. He also highlighted Argentine wheat as a globally competitive cereal, in terms of price and quality.

“We have a scenario of high wheat prices, which are a reflection of the harvest results of the main grain exporters, which caused global stocks to remain at lower levels. The increase in demand for food in the world and the reduction in global wheat harvest numbers generate an increase in food prices, as we are currently seeing”, pointed out Araújo.

“The rise in prices, such as input prices, for example, is one of the factors that will possibly impact the next wheat harvest in the state of São Paulo, as producers are recalculating costs and reevaluating the cultivation of the grain in the state in 2022 ”, concluded Oliveira.