Jun 08, 2010
Wet Weather Delays Wheat Planting in Rio Grande do Sul
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Heavy rains and saturated soils are delaying the planting of the 2010 wheat crop in Rio Grande do Sul. In the northern part of the state, where nearly all the winter wheat is grown, only 10% of the anticipated wheat acreage has been planted, which is significantly behind the normal pace. Normally, wheat in Rio Grande do Sul is planted in June and harvested in November. Virtually all the wheat in the state is followed by a second crop of soybeans.
It's not just wet soils that are making farmers reluctant to plant wheat, increased costs and low prices are also deterrents as well. One of the most common pests affecting wheat production in the state is a white grub that attacks the roots of the newly planted wheat. Treating the seeds with an appropriate insecticide can solve the problem, but it increases the cost of producing the crop. Increased costs are a concern because cash prices for wheat in southern Brazil are very low.
Local market prices for wheat are in the range of R$ 21.00 per sack which is significantly below the minimum price set by the Brazilian government. The government has been trying to support commodity prices through a series of auctions where farmers can sell their crops to the government instead of the local cash market. Since the prices of wheat, corn and soybeans are all below the minimum price set by the government, farmers are worried that the government program will run out of funds before they will be able to sell their wheat.
Conab had previously estimated that the wheat acreage in Rio Grande do Sul would be down by 12% compared to last year, but that estimate may now be overly optimistic.