Brazil’s wheat cultivation area expected to increase due to high demand

Domestic wheat prices have been rising since October last year, influenced by the high dollar, difficulties in imports and, more recently, by strong domestic demand. 
 

This year, producers can increase the area allocated to triticulture compared to 2019, with the expectation of good profitability.
 

According to data from Deral/Seab released on 23rd March, new harvest areas should add 1.08 million hectares, 4.7% more than last season in 2018/19. Productivity could grow 32% at 3.24 tons per hectare, resulting in a production level of 3.4 million tons, an increase of 39% compared to the previous season. At the same time, mills are looking for alternatives to imports, in order to mitigate the domestic impact of reduced availability.

According to data from Cepea, the price of wheat offered to producers in the over-the-counter market started in the month of April, with an average of three working days, between 7% and 23% higher than the average in April 2019, considering the various production regions in the south and São Paulo. In the batch market involving negotiations between companies, prices are between 16% and 30% higher in comparison.