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March 22, 2021

Concerns in Brazil that Argentine strike will affect wheat supply

Brazil, a country which neighbours Argentina will have an increased demand for cereals over the coming weeks. It has been suggested that Brazil's milling sector could be paralyzed by the strike in Argentina.

The strike in the ports is heading into its third week and in Brazil they warn that if it does not end soon the processing of cereal imported from Argentina for the production of flour will be greatly effected.

Image credit: Clare Black on Flickr
(CC BY 2.0)
Abitrigo, Brazil's Wheat Industry Association cited government data showing a drop in imported wheat volumes, depicting the fact as a sign that the Argentine strike is affecting imports.

It should be noted that, although Brazil lost participation in recent years, is the main destination for Argentina's wheat.

In a year-on-year comparison, the data showed that wheat and rye imports fell by half during the third week of December 2020, to around 14,000 tonnes a day. Currently, Brazil has just completed its own wheat harvest, estimated at 6.3 million tonnes, but this is not enough to support the domestic market.

Rubens Barbosa, president of the Wheat Millers Association, told Reuters that although this is a time of year when Brazilian mills buy relatively little wheat, that will change soon if the strikes continue.

Brazil imported 4.3 million tonnes of cereal from Argentina this year, and the trade volume from the US and Russia increased 92 percent and 159 percent in this period, respectively, a sign that Brazil is accessing alternative suppliers, Reuters reported.

 

The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.

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