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June 30, 2020

Brazil's Winter Wheat Crop off to a Generally Good Start

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The state of Parana is the largest wheat producing state in Brazil and farmers in the state had planted 89% of their anticipated winter wheat as of late last week. The Department of Rural Economics (Deral) estimates that farmers in Parana will increase their wheat acreage by 10% to 1.13 million hectares, which is an increase of 40,000 hectares compared to their May estimate. The wheat crop in Parana is rated 2% poor, 10% average, and 88% good.

Parana's wheat production is now estimated at 3.67 million tons compared to Deral's May estimate of 3.5 million tons. If verified, this would represent an increase of 72% compared to last year. The statewide yield is estimated at a record of 3,250 kg/ha (48 bu/ac).

The growing season is just getting started, so a lot things could still happen such as frosts, heavy rains at harvest, or even dry weather similar to what happened the last several years. The record wheat production in the state occurred in 2014 when the state planted 1.4 million hectares and produced 3.8 million tons.

Record wheat production in Parana could help to reduce Brazil's anticipated 2020 wheat imports of an estimated 7.3 million tons.

The state of Rio Grande do Sul is Brazil's second largest wheat producing state and Emater reported late last week that farmers in the state had planted 74% of their intended winter wheat, which was an advance of 31% compared to the week before. Emater is estimating the acreage at 915,700 hectares which is 20.3% increase compared to last year.

Wheat prices are good in Rio Grande do Sul and farmers are hoping for a good wheat crop to help compensate somewhat for a very disappointing 2019/20 soybean crop.