Brazil to harvest 10 million mt of wheat; export 3.5 M mt: StoneX

Brazil’s wheat production and exports are expected to hit a record high volume amid lower supply availability in the international market intensified by the conflict in Ukraine, stimulating the country’s wheat producers to invest in the crop also due to the current increase in prices, both in domestic and foreign markets.

The country’s planted area is expected to reach 3.4 million hectares, 20.6% up from the previous year, while production is forecast at 10 million mt, consultancy StoneX staid on Thursday. 

Earlier this morning, the country’s food agency Conab forecast a 7.9 million mt production estimate, up from last year’s 7.6 million mt, while the planted area was forecast at 2.7 million mt.   

Exports are expected at 3.5 million mt, also a record.

In the first quarter of the year, Brazil’s exports reached 2.1 million mt, versus 490,658 mt in the same period in 2021, Brazil’s grain exporters' association Anec showed on Tuesday.

Last year, Brazil’s total exports reached 1.1 million mt, while the country harvested 7.6 million mt of wheat and imported 6.2 million mt.

"It is important to highlight that in face of a favorable exchange rate and competitive prices, Brazil has become a potential exporter of wheat, something new for the country," said StoneX's risk management consultant, Jonathan Pinheiro.

Brazil usually imports wheat, mainly from neighbouring Argentina, as domestic output satisfies only about half of its demand.

In 2022, Brazil is expected to import 6.5 million mt, StoneX estimates, while demand is expected to reach 12 million mt.