BRAZIL-WHEAT NEEDED.
There are unusually large opportunities for other exporters to sell wheat to Brazil because of Argentina’s limited supplies. Brazil is one of the world’s largest buyers, importing 5 to 8 million tons a year. Argentina usually supplies close to 90 percent of Brazil’s needs, but last year Brazil was forced to look to other suppliers due to the temporary closing of Argentina’s export registrations. Exports are restricted again this year due to Argentina’s drought-reduced crop. Consequently, Brazil will need to look outside its regional trade partners again this year to meet its needs.
Similar to last year, the United States and Canada are likely beneficiaries of Argentina’s shortfall in the Brazilian market. Both countries have an abundance of exportable supplies and competition between them is likely to intensify in the coming months as old-crop wheat will continue to weigh on the market.