Wheat harvest nears its end in Brazil

A wheat harvest approaches its end in Brazil, and official estimates released last week indicated negative readjustments for offers Brazilian and worldwide. In Brazil, Conab reduced expected productivity by several states, with emphasis on Paraná and Rio Grande do Sul.

That reduction is a reflection of drought and frost during the development of the crop, now estimated at 2,832 tonnes per hectare, 6,4% below report previous, but still 6% higher than in 2020. Globally, the USDA also reduced production estimates, which in turn could drive inventories of passage in 2021/22 for the lowest volumes since 2015/16.

Second Cepea researchers, this scenario drove many sellers away from the spot market Brazilian market and supported cereal sales prices in recent days, mainly in Paraná. In Rio Grande do Sul, the progress of the harvest is still pressured wheat values.