Wheat prices fall in both domestic and international markets following the progress of the harvest.

Wheat prices continue to fall in the Brazilian and international markets, pressured by the progress of the harvest and high global supply. According to data from Itaú BBA Agro, in light of this scenario, Conab announced this month measures to support domestic sales through public auctions.

In Brazil, the decline was significant in October: prices fell 91% compared to September, ending the month with an average of R$64.22 per 60 kg bag in Paraná. The downward trend continued in the first weeks of November, when the partial average up to the 14th was R$64.00. The progress of the harvest and the weight of the international supply continue to be the main factors putting pressure on the domestic market.

Photo: Jose Fernando Ogura

Abroad, October saw stable prices in Chicago, although still under pressure. Soft wheat ended the month at 511 cents per bushel, a slight increase of 0.4% compared to September. However, compared to the same period in 2023, prices are 12.7% lower.

With the start of November, the international market reacted to speculation about Chinese purchases, pushing prices to 550.25 cents per bushel on November 4th. However, trading volumes fell short of expectations, and prices declined again, closing the partial monthly average at 538 cents by the 14th. The release of new USDA data, which revised the supply estimate upwards, reinforced the downward pressure.

In Brazil, prices paid to producers remain below the minimum value established by Conab, of R$78.51 per sack. To try to reduce the discrepancy and stimulate commercialization, the company announced on November 7th the release of R$67 million for auctions of the Pepro and PEP programs, with the expectation of supporting the sale of 250,000 tons of wheat.