With frost damaging corn, demand for wheat could grow

Frosts that hit different regions of Brazil last week damaged a small portion of the wheat crops already established and, especially, the second harvest corn areas.

Cepea researchers point out that, in the case of corn, the sowing and development of some crops, especially those in Paraná and Santa Catarina, had already been affected by less than necessary rainfall, a context that should reduce production.

As livestock farming demands wheat as a substitute for corn, this scenario tends to increase demand for wheat. In fact, a Cepea survey shows that wheat prices have already reacted in recent days, especially those paid to producers.