Wheat Import
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Wheat: Brazilian imports rise 70% in August. / Image Source: Odepa.
Wheat
Wheat imports in the country are accelerated. In the month of August, Brazil bought more than 550,000 tons, up 70% compared to 2015. The market analyst at brokerage Sierra Morena Walter Von Muhlen explains that some factors influence this result, such as the breakdown of cereal crop last year and the decrease in production in Argentina.
"Brazilian wheat came with lower quality, and the producer ended up selling more to feed industries. Argentina had production taxed and decided to produce less. Moreover, the breakdown of exchange and wheat in the international market favored the imports of the United States" recalls Von Muhlen.
Brazil has always needed to import wheat to meet domestic demand, which currently is 12 million tons. Because of the breakdown of the Rio Grande do Sul crop, the Brazilian industry will need to import more grain produced abroad. Last year were imported 5.900 million tons. This year is estimated to 6.5 million. In São Paulo, 50% of the wheat bought by Belarina mill in São Paulo, comes from Paraná, the other half is imported. The Mercosur countries were the main suppliers, but the restrictions made by Argentina, last year forced the industry to look for the American market.
With taxes and fees, the American wheat arrives in Brazil costing up to 25% more than the Argentine wheat. The ton in the neighboring country costs today, US $ 850 to more than R $ 1,050 US.
Source: Canal Rural, OR Sementes.