Thankfully, Brazil had a record wheat crop this year, and will have to import a smaller volume of the cereal, compared to the average of previous years.
Commodities have risen so much, due to international demand, that the participation of wheat in the manufacture of animal feed has been gaining ground in the world, and also holding cereal prices at high levels.
In the 2021/22 harvest, at least 160 million tons of the cereal will be destined for the feed sector in the world, a share of 20.5% in total production. Two years ago, the volume was 139 million, representing 18.3% of the volume produced.
As a result, ending stocks, which were 295 million tons in 2019, should end this crop at 280 million. World wheat production is 787 million.
This tendency to use wheat in the composition of the ration is also accentuated in Brazil. Embrapa, ABPA (Brazilian Association of Animal Protein) and Farsul (Federation of Agriculture of Rio Grande do Sul) are creating a specific program to increase the planting of cereal varieties intended primarily for the animal feed industry.
Producers, with adequate varieties and a commitment to purchase by the industries, could sow from 6 million to 8 million hectares more in the period and winter.
Brazil has set up a good part of its industrial park for the production of proteins in the southern states. The large production of corn, however, went to the Center-West, raising the costs of protein producers.
In addition, farmers in the Midwest are discovering new ways to export corn through the ports of the so-called Arco Norte, which guarantees them better profitability than making corn travel 2,000 kilometers to reach consumers in the South.
With greater demand, wheat maintains high prices on the international market. This Wednesday (19), the cereal closed at US$ 7.96 per bushel (27.2 kg) in Chicago, up 3.6% from the previous day.
In Brazil, prices are at record levels. A ton of wheat costs R$ 1,675 in Paraná, 87% more than a year ago. The data are from Cepea (Center for Advanced Studies in Applied Economics).
The volume produced in Brazil is a record, but the country will still have to import 6.5 million tons to guarantee annual consumption of 12.6 million tons, according to Conab (National Supply Company).
The ending stock for the 2021/22 crop, however, will be close to 277 thousand tons, below the average volume of 1 million in previous years.
The high value of the dollar, due to the derangements of the economy, helps to put pressure on the prices of wheat and its derivatives in the country.
In 2021, the bagel rose 12%, above average inflation, which was 9.7%, according to Fipe (Fundação Instituto de Pesquisas Econômicas).
business in China The Brazil-China Business Council launches a document on the 26th on the opportunities and challenges for Brazilian companies in China’s e-commerce, the largest in the world.
Business in China 2 The objective is to present the largest players in this market, describe the available business models and identify promising sectors for Brazilian exports.
China business 3 Among the sectors identified as promising are food, beverages, dairy, coffee and meat, according to Renata Thiébaut, who has worked in e-commerce for 16 years and has followed China’s digital transformation. She is the author of the document.
Not here Donald Trump’s delusional moments, when he went against world trade, resulted in a loss of US$ 27 billion to the US agriculture sector from mid-2018 to the end of 2019, according to the USDA (Department of Agriculture).
not here 2 At least 95% of that damage came from China, a country that Bolsonaro also tried to blacklist from Brazil’s exporters, but the sector reacted. According to Usda, the main beneficiary was Brazil, which increased exports of soybeans and meat to the Asian country.
high day The international commodity market reacted this Wednesday (19) and had strong price increases. Soybeans, due to lost production in South America and better crushing and exports in the United States, rose 2.2%.
high day 2 Cotton, sugar and coffee, other important products in Brazil’s export basket, rose from 1.9% to 2.5% on the New York and Chicago commodity exchanges.​
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