The current surge in Brazilian wheat exports might encourage farmers to expand their wheat acreage, according to some agricultural consultants. From December to March, Brazil has exported 2.5 MMT of wheat. Brazil has a domestic demand of 12.7 MMT per year and imports about half of its wheat.
One consultant says there is room to double the wheat planted area. The consultants note that Rio Grande do Sul farmers could increase wheat acreage by around 30% this year based on the 600,000 metric tons already sold. They explain the state plants 6 million hectares of soybeans in the summer and only 1.16 million hectares of winter wheat. Exports from the state could enter the world market before Argentine wheat since there is idle capacity at the Rio Grande port.
