Wheat prices fluctuate in 2020

The prices of wheat and its derivatives fluctuated more intensely throughout 2020, but, in general, remained high compared to previous years. In the case of raw materials, values ​​started the year on the rise, a movement that began in October 2019 and was influenced by the valued dollar, difficulties in importing and, more recently, firm domestic demand.

At the end of 2020, the intensification of field work and the completion of the harvest put pressure on cereal prices on the domestic market. However, on average for the year, domestic prices were above those seen in 2019, in nominal terms.

In the derivatives market, despite Covid-19, the supply of flour and bran remained stable, and demand was strong. It is noteworthy that pasta intended for pasta was among the most sought after items by end consumers during the pandemic.

Therefore, the prices of flour and bran remained high in 2020, also influenced by the significant increase in the price of wheat grain and, consequently, the transfer of these values ​​to derivatives, as the mills operated with tight margins.