Cepea, October 2, 2024 – As the 2024/25 harvesting advances in Brazil, more wheat batches have been offered in the spot market. Concerning the demand, players surveyed by Cepea indicate that some mills reduced processing activities due to high stocks and the low liquidity in the flour market. In this scenario, wheat prices dropped in the domestic market in late September.
According to data from Cepea, between September 20 and 27, the prices paid to wheat farmers (over-the-counter market) moved down 0.15% in Santa Catarina, 1.8% in Paraná and 2.6% in Rio Grande do Sul. In the wholesale market (deals between processors), quotations decreased 0.61% in Paraná, 1.7% in São Paulo, 1.2% in Santa Catarina and 0.9% in Rio Grande do Sul. Dollar quotations moved down 1.49% against Real in the same period, at BRL 5.437 on September 27.
In September, the monthly average of wheat prices in Paraná was BRL 1,482.91 per ton, for a decrease of 3.6% against August/24, but rising 39.1% in relation to that in September/23, in real terms (IGP-DI). In Rio Grande do Sul, the average was BRL 1,365.13/ton, 4.5% down in one month and +18.6% in one year. In São Paulo, prices averaged BRL 1.530.81/ton, -3.9% and +38% in the same comparisons. As for Santa Catarina, the average was BRL 1,503.81/ton in September, downing 0.3% compared to August, but moving up 22.4% against that in the same month last year.
Based on data from Conab (Brazil’s National Company for Food Supply), between September 16 and 20, the import parity price for the wheat from Argentina delivered to Paraná state was at USD 275.99/ton. Considering the average of the US dollar in that period, at BRL 5.4784, the wheat imported was sold at BRL 1,511.96/ton, while for the Brazilian wheat traded in Paraná, the average was at BRL 1,482.91/ton, according to data from Cepea. In Rio Grande do Sul, the price of the product from Argentina closed at USD 258.57/ton, which accounts for BRL 1,416.52/ton – against BRL 1,365.13/ton on the average of the state calculated by Cepea.
The harvesting continues progressing in Paraná. According to data from Seab/Deral, 32% of the production (equivalent to 1.2 million tons) in the state was lost because of the dry weather during the winter and frosts in the period close to the harvest. In spite of that, players surveyed by Cepea say that grains present good quality.
(Cepea-Brazil)
