WHEAT: WORLD MARKETS AND TRADE
MONTHLY HIGHLIGHTS: See PDF version for charts
Brazil Expected To Be Largest Importer in 2006/07: Brazil is expected to surpass Egypt and the European Union this year and return as the world’s largest import market for the first time since 2000/01. Production has fallen to only half of last year’s level as the crop has been severely hit by a combination of drought and frosts at the end of August and beginning of September. This crop shortfall will lead to higher import demand, and could result in greater wheat needing to be sourced from countries outside South America. Last year 91 percent of Brazilian imports were sourced from Argentina, and 7 percent from Paraguay.
Domestic: For October, wheat prices climbed for all classes, and continued to set 10-year highs. The main catalyst for higher prices has been severe drought in Australia, which has slashed production by more than half and is exacerbating already tight global exportable supplies. For the month, Soft Red Winter (SRW) prices rose $22 per ton, Soft White (SWW) prices rose $17, Hard Red Winter (HRW) rose $12, and Hard Red Spring (HRS) prices rose $8.
TRADE CHANGES IN 2006/2007
Return to Table of Contents
Last modified: Sunday, March 17, 2013