Agents limit business with wheat and price remains firm

Business has been punctual in the domestic wheat market. This is because, according to Cepea employees, agents are paying attention to the completion of sowing in many regions and are already awaiting the arrival of the new national harvest, which should have record production.

Furthermore, the national sector is also paying attention to estimates indicating declines in global production and in Argentina, which is the main supplier of the cereal to Brazil. According to the USDA, world production for 2022/23 is estimated at 771,6 million tons, a drop of 0,2% compared to June/22 and 0,9% lower than last season.

In Argentina, the Rosario Commerce Exchange estimates that the area under wheat in the country will decrease from 6,2 million hectares to 5,9 million hectares in the 2022/23 harvest. Thus, Argentine production was also reduced, now forecast at 17,7 million tons.

As for prices in Brazil, despite low liquidity, they remain firm, operating above R$2 per ton and showing only small variations, especially in the over-the-counter market.