On an upward trend, the price of wheat grain in March reached the same levels seen in October of last year in the southern states of Brazil. In some regions monitored by Cepea, such as São Paulo, the price of wheat is at its highest in approximately six months. This trend is mainly linked to rising wheat prices on the international market and the dollar’s appreciation against the real, as well as expectations of reduced planting area and production in the upcoming Brazilian harvest. In this context, according to Cepea researchers, producers have been restricting the supply of wheat on the spot market, betting on further price increases and anticipating the future need for mills to replenish their stocks during the off-season.

Source: Notícias Agrícolas