Domestic wheat market remains paralyzed

The domestic wheat market remains stagnant. The milling industry has contracted specific purchases. And producers, mainly from Rio Grande do Sul, still have stocks for sale. The information is from Conab. Meanwhile, sowing for the 2023/24 harvest continues to evolve in Paraná, with 39% of crops already planted. The majority of plantations (60%) are in the vegetative development phase, while the remainder are in the germination phase.

With regard to weekly prices, the average price in Paraná showed a devaluation of 0,27%, being quoted at R$69,91 per 60 kg bag. In Rio Grande do Sul, there was an appreciation of 0,23%, with the price reaching R$68,91 per 60 kg bag.

In Argentina, an increase of 18,18% in the planted area is expected, from 5,5 thousand hectares to 6,5 thousand. Production is expected to increase by 56%, after a drop in the current harvest. With this increase, it is estimated that the exportable balance will increase by 145,45%, reaching 13,5 million tons.

Foreign market shows appreciation

In the foreign market, international wheat prices registered appreciation for the second consecutive week. This scenario is influenced by precarious conditions in North American crops, lower stocks in the United States and uncertainties regarding the renewal of the International Grain Corridor agreement in the Black Sea.

The average international price was quoted at US$386,27 per ton, showing a weekly appreciation of 1,59%. This rise in prices reflects concern about the situation of crops in the United States, one of the main grain producers in the world, in addition to the uncertainties surrounding the trade agreement in the Black Sea.

However, at the end of the week, there was relief for the market, as the Black Sea International Grain Corridor agreement was extended for another two months, thanks to the efforts of the Turkish president. This extension brings a little more stability and predictability to international grain negotiations.

With rising prices and prospects for an increase in Argentine production, it is important that Brazilian producers closely monitor market movements to take advantage of sales opportunities and guarantee good results for the national agricultural sector.