Brazil will not import Russian wheat

20.11.2017

A report from consultancy Trigo & Farinhas, based in Curitiba (Brazil), denies that Brazil would import Russian wheat after yesterday’s market speculation at the Chicago Mercantile Exchange. Luiz Pacheco, the consultancy’s director and editor of the reporter, said that there are three reasons that the South American country would not bring wheat from Russia.

The first one is that imports are made by private companies, not the government, and they already allowed to do it and never done before. Second is that Russian wheat does not have quality. “Russian wheat is 10%-12% of protein, but it does not grow for consumption of pizzas or cakes”, explained Pacheco.

Finally, the third reason is that the Russian wheat is not competitive against Argentinian wheat. A FOB price listed in a Russian port by Trigo & Farinhas was US$ 192 per ton this week, while Argentinian wheat is paid US$ 176 per ton with a costly freight cost from the Black Sea to Brazilian ports.


agrosouth-news

Readers choice: TOP-5 articles of the month by UkrAgroConsult