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September 26, 2016

Brazil Increases its Wheat Imports from the United States

Millers in Brazil continue to import wheat from the United States and Canada while they wait for the wheat harvest in southern Brazil to get underway. During August, Brazil imported 103,400 tons of U.S. wheat and 18,500 tons of Canadian wheat. As far as the U.S. is concerned, this represents a 60% increase over the 69,800 tons of U.S. wheat imported in August of 2015. Brazil is expected to import more U.S. wheat in September, maybe as much as 200,000 tons.

The early wheat harvest is underway in Parana, which is the largest wheat producing state in Brazil. The Department of Rural Economics in Parana (Deral) is reporting that the wheat crop in Parana is 7% in vegetative development, 11% flowering, 28% filling grain, 32% mature, and 22% harvested. The early reports indicate that the grain quality is very good this year.

Rio Grande do Sul is the second largest wheat producing state in Brazil and the wheat crop in the state continues to be rated in excellent condition according to the Consulting Agency Trigo & Farinhas. The wheat crop in Rio Grande do Sul is 34% in vegetative development, 40% flowering, 25% filling grain, and 1% mature. Farmers are actively applying fungicides to combat fungal diseases. The quality of the wheat is expected to be good in the state, which is the second largest producer after Parana.