Jun 25, 2021

Wheat Production in Rio Grande do Sul to Increase 37.8%

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Farmers in the state of Rio Grande do Sul are planting their 2021 winter wheat and they are expected to increase their winter wheat acreage by 13.2% to 1.08 million hectares (2.66 million acres) according to Emater-RS. The 2020 wheat acreage in Rio Grande do Sul was 953,800 hectares (2.35 million acres). If verified, this would be one of the largest wheat acreages in the state in recent memory. Rio Grande do Sul is Brazil's second largest wheat producing state after Parana.

Near record high prices for soybeans and corn have left farmers in the state well capitalized and they are investing their profits into their wheat, which also has a very high price. Current wheat prices in the state are 27% higher than last year.

Emater is estimating that the state will produce 2.89 million tons of wheat during 2021, which would be an increase of 37.8% compared to last year's production of 2.1 million tons. The average statewide wheat yield in 2021 is expected to be 2,600 kg/ha (38.7 bu/ac), which is 21.6% increase over last year's yield of 2,200 kg/ha (32.7 bu/ac).

The wheat planting in the state should extend until late July. Meteorologists are expecting enough moisture during July and August for normal crop development. The rainfall during September is expected to be below normal.

Brazil usually producers only about half of its wheat needs with the remainder imported from neighboring Argentina.