Wheat prices remain firm in Brazil
Field activities are coming to an end, but prices remain firm
Watermelon planting in Rio Grande do Sul continues to advance, with some crops in Arroio dos Ratos already starting the harvest on time to supply the regional market. According to Hortifruti/Cepea collaborators, so far, the dry climate in the region has favored the development of fruits, which have been presenting a high caliber, despite the recent low temperatures recorded in the state.
However, the great possibility of La Niña occurring in these last months of 2021 has worried producers in Rio Grande do Sul. According to NOAA (National Oceanic and Atmospheric Administration), there is a 90% chance of the phenomenon occurring between November and January in Brazil – in the south of the country, La Niña usually delays rain, which can limit productivity, especially in rainfed crops.
Another negative impact of drier weather is the increase in the incidence of viruses, which tends to further increase production costs and, consequently, reduce the profitability of the crop, if prices do not rise in the same proportion. It is worth mentioning that the scenario may be more worrying in Encruzilhada do Sul, due to the lower availability of water in the region's reservoirs compared to other watermelon producing areas in the state.
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Field activities are coming to an end, but prices remain firm
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