Wheat cultivation in 2020 may increase in BR

The signaling of higher prices in Brazil and the possible delay in the ideal window for sowing second-crop corn in the states of Paraná, São Paulo and Mato Grosso do Sul may attract producers consulted by Cepea to grow wheat in 2020. In Rio Grande do South, where there is a significant percentage of areas that end up receiving only ground cover crops, there may also be greater wheat cultivation.

If this happens, the domestic supply of the cereal may be greater in the last four months of the year, which tends to impact prices throughout the second half of this year. As for derivatives, most mills are expected to be supplied for the first quarter of 2020.

Agents consulted by Cepea point out that there should be an increase in the prices of flour and bran at the beginning of the year, since the value of wheat grain has risen. In the case of bran, the appreciation of corn also tends to support the prices of the derivative.