Frost in South America will generate more demand for North American wheat


The frost in the south of Brazil has been less intense than expected, according to some meteorological services. The coffee crops in Paraná  have escaped from severe damages, tell union workers from the region. On wheat and cane crops in Paraná and São Paulo, the frost also had lower volumes than forecast. However, a detailed briefing from the Trigo & Farinhas bulletin reveals that a significant slice of wheat crops in the north Paraná were affected by some damage.

Some yields from the northern part of the state are reported with stems and that can result in death of the grains. The south part of Paraná, however, has escaped completely from frost damage. In Paraguay, nearly 25 percent of the crops were lost. In approximately 10 days more detailed briefing will be released in Brazil reporting the total wheat losses in Rio Grande do Sul and Paraná. The services of Rio Grande do Sul did not release any sort of report on losses of wheat so far.

Luiz Pacheco, editor of Trigo & Farinhas bulletin, thinks that the damages indeed will impact the market. It would bring more purchases from the United States. An estimated 800,000 tons, he reveals. “Domestic prices in Brazil will remain high at least for the next two months. In Rio Grande do Sul the price will be R$ 800 and R$ 900 in Paraná”, explained Pacheco.

Estimates brought to the public yesterday say that China will also contribute for higher demand in the world for wheat. The country will need at least 10 million of imports of the cereal – beating Egypt as an importer. Brazil, also one of the largest importer, currently need seven million tons. “Producers are still cautious with the sales, but they realize the Chinese interest and they are awaiting to see how the crop advances”, has told Reuters Tom Puddy, trader of the Australian group CBH.