Wheat cultivated area expected to increase due to high demand

Domestic wheat prices have been on the rise since October last year, influenced by the high dollar, import difficulties and, more recently, firm domestic demand. As a result, this year, producers can increase the area allocated to wheat farming compared to 2019, in the expectation of good profitability.

According to data from Deral/Seab released on March 23, the new harvest area should total 1,08 million hectares, 4,7% more than last season (2018/19). Productivity could grow by 32%, at 3,24 t/hectare, resulting in production of 3,4 million tons, a strong increase of 39% compared to the previous season. At the same time, mills are looking for alternatives for imports, in order to mitigate the domestic impact of lower availability.

According to Cepea data, wheat prices received by producers (over-the-counter market) began the month of April (average of three working days) between 7% and 23% higher than the April/19 average, considering the different regions producers from the South and São Paulo. In the lot market (negotiations between companies), prices are between 16% and 30% higher in the same comparison.