Brazil: wheat crop will fall by 1.15 million tonnes

11 Aug, 2017
Brazil: wheat crop will fall by 1.15 million tonnes
According to the Brazilian trade company Zeni, in 2017, wheat crop may fall to 5.58 million tonnes at 6.73 million tonnes a year earlier. Reduction is due to decreased cultivated areas and yields.

Areas under wheat cultivation in the key production state of Parana are reduced by 10% to 977,800 hectares, in the Riu Grande de Sul with 10% to 699,000 hectares. In Parana in the first half of July there was a severe cold, which damaged the crops. In Riu Grande de Sul, the crops were damaged by drought in June - July.

 

In addition to a weaker crop, poor grain quality is also observed. Domestic consumption of wheat increases by 3.3% for the year, and import will be 7 million tonnes.

 

Traditional key suppliers of wheat to Brazil are Argentina and Paraguay. Due to the drought in Paraguay, the supply from this country will be limited during the season. Brazilian importers will be looking for other suppliers, most likely from the US.