Domestic wheat prices have been rising since October last year under the influence of a high dollar exchange rate, difficulties with imports and, more recently, high domestic demand.
This year, producers can increase the area allocated for growing crops compared to 2019, expecting good profitability.
Brazilian coffee is considered the best in the world, but the favorite drink of the Brazilians themselves is cocoa.
According to Deral and Seab, published March 23, new sown area should increase by 1.08 million ha, which is 4.7% more than last season in 2018/19. Productivity can grow by 32% to 3.24 tons per hectare, resulting in a production level of 3.4 million tons, an increase of 39% over the previous season. At the same time, plants are looking for alternatives to imports to mitigate the internal impact of reduced production.
According to the data, the price of wheat offered to producers on the OTC market began to grow in April, an average of three business days, which is 7-23% higher than the average in April 2019, given the different regions of production in the south and in San Paulo In the market of package services, including negotiations between companies, prices are 16-30% higher.
- Organizations representing coffee farmers from around the world will meet in Brazil next week as the industry goes through one of the most difficult times when prices barely cover production costs and drive farmers out of business.
- Brazilian farmers will have 222.7 billion reais (57.7 billion US dollars) to finance the harvest of 2019-2020, and interest rates will rise for the largest producers, as the Brazilian government is trying to curb its large budget deficit.
- Clube Agro Brasil, the first multi-brand relationship program in Brazilian agribusiness, will enter the market this month, promising to connect industry, sales channels and manufacturers across the country. The program was formed by the brands Corteva Agriscience, Mosaic Fertilizantes and MAPFRE to benefit the entire network.