Wheat: prices rise, but harvest faces declining quality.

The prices of wheat Prices remain at higher levels in Brazil, but producers are concerned about losses caused by weather problems in the current harvest. According to data released by the International Center for Economic Analysis and Agricultural Market Studies (CEEMA), the reduction in planted area and the drop in quality and production are mainly affecting Rio Grande do Sul and Paraná.

According to data released by CEEMA, the average price of wheat in Rio Grande do Sul ended the week at R$ 73.78 per sack. In Paraná, the higher quality product is traded between R$ 79.00 and R$ 82.00 per sack. These prices are at higher levels after a long period of very low prices. The main concern at the moment is related to the losses recorded in the current harvest due to weather problems.

In addition to a reduction of more than 271 TP4T in the planted area, Brazil is facing a significant drop in wheat quality and production in its two main producing states: Rio Grande do Sul and Paraná. In Rio Grande do Sul, regions near the border with Santa Catarina have already begun harvesting. In these areas, however, the average productivity is 38 sacks per hectare, while the PH (Productivity Index) reaches only 74, according to data released by Emater. This scenario reinforces the concern about the impacts of the climate on both the volume produced and the quality of wheat harvested in the South of the country.