Brazil To Put Wheat Import Tariff On The Chopping Bloc
Nogger's favourite grains website Agrimoney.com is reporting that Brazil might be about to scrap it's duty on wheat imported from outside the Mercosul trade bloc.
Brazil's regular No 1 wheat supplier is Argentina, who in previous years have normally had enough to meet almost all of Brazil's import needs. Of course things haven't gone according to plan for the Argies in the last two years, with the 2008/09 crop wrecked by drought and this year's plantings the smallest on record in a two fingered salute to the government.
So with a wheat crop of only around 7.5 MMT potentially coming out of Argentina this year, and them consuming around 6.5-7.0 MMT themselves, there isn't going to be much left for Brazil's best mates to export this year.
Hungry Brazil are set to consume 11.4 MMT of wheat in 2009/10 according to yesterday's USDA figures, but with their own production badly affected by heavy rains they are likely to deficient to the tune of around 7 MMT this year, say Agrimoney.
Clearly the vast majority of that is now going to have to come from outside the bloc.
Well it's a good job that the shops are still open isn't it? Certainly the US will be fancying their chances of a slice of that action, as Brazilian millers are famously anti-Russian wheat.
Brazil's regular No 1 wheat supplier is Argentina, who in previous years have normally had enough to meet almost all of Brazil's import needs. Of course things haven't gone according to plan for the Argies in the last two years, with the 2008/09 crop wrecked by drought and this year's plantings the smallest on record in a two fingered salute to the government.
So with a wheat crop of only around 7.5 MMT potentially coming out of Argentina this year, and them consuming around 6.5-7.0 MMT themselves, there isn't going to be much left for Brazil's best mates to export this year.
Hungry Brazil are set to consume 11.4 MMT of wheat in 2009/10 according to yesterday's USDA figures, but with their own production badly affected by heavy rains they are likely to deficient to the tune of around 7 MMT this year, say Agrimoney.
Clearly the vast majority of that is now going to have to come from outside the bloc.
Well it's a good job that the shops are still open isn't it? Certainly the US will be fancying their chances of a slice of that action, as Brazilian millers are famously anti-Russian wheat.
