Need for quality pushes Brazilian demand for US wheat


Brazilian demand for high-quality wheat are driving demand for US wheat.

The US Department of Agriculture's bureau in Brasilia forecast Brazilian wheat imports at 6.50m tonnes, down 245,000 tonnes year-on-year, and below official department forecasts.

The pressure on imports comes from a big harvest just completed, and higher stocks, with imports also rising.

Demand from the US

But imports from the US remain robust, thanks to demand for high quality, and are forecast at 1.30m tonnes, more than three times the pace of last year's imports.

This would be the biggest imports from the US since 2013-14, and the second highest in over thirty years.

"There was a strong pace of imports at the end of 2016 due to a demand for higher quality imports, which lead to a large increase in North American imports," the bureau said.

"Between October and December this year, Brazil imported 658,586 tonnes of US wheat."

The bureau expects that Brazil will "continue to import high quality US wheat".

Pace of consumption eases

Consumption was seen rising, thanks to higher feed use in early 2016-17, but this factor was seen easing.

Total wheat consumption was seen up 1.50m tonnes year-on-year, at 11.10m tonnes, but below official USDA estimates.

"Porkand poultry producers used wheat to feed their animals due to high corn prices," the bureau said.

"But as the harvest finished for the first crop corn, prices came down and those farmers will resume using corn for feed."


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