Jul 29, 2022
Wheat Planting Complete in Rio Grande do Sul in Southern Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Farmers in Brazil's southernmost state of Rio do Sul increased their winter wheat acreage hoping to recuperate losses from their 2021/22 summer soybean and corn production. The winter wheat planting is now complete in the state and the weather has generally cooperated thus far.
The wheat planting was delayed somewhat by wet weather, which may turn out to be beneficial in the end. Meteorologists in Brazil are forecasting the possibility of late frosts in September, which would be detrimental to the wheat if it occurred during flowering or grain filling. Since the wheat was planted a little later than normal, the crop may not reach its critical reproductive phase until after the threat of frost has passed. The wheat crop in the state is expected to yield at least 50 sacks per hectare (44.7 bu/ac).
In the municipality of Ijui in northern Rio Grande do Sul, farmers have finished planting their wheat and they increased their wheat acreage 20-30%. Germination has been good and the crop is developing normally in contrast to last year when the wheat crop suffered from dry weather.
Farmers are worried about potential frosts in August and September and heavy rains during harvest which can negatively impact the quality of the grain.
The cost of production increased significantly this year and farmers are closely monitoring the domestic prices. Current wheat prices are in the range of R$ 115 to R$ 120 per sack (approximately $9.85 to $10.30 per bushel), which is high enough to make a small profit. If prices fall below that level, farmers may lose money especially since production costs have increased this year.
Brazil is expected to produce as much as 10 million tons of wheat in 2022, which would be a new record.