Flour consumption drops 15% wheat and presses

A few times the market saw a movement of low demand for flour but, given the economic situation of the country, already consumption declined from 15%. Factors such as the high dollar and weather problems in the fields complete the picture hard wheat chain.
"The flour market is fairly weak. The price of wheat is still guided by Exchange and that presses the case of mills. With the fall in demand we have difficulty to pass on these costs to the end product, "says the President of Pacific Mill, Lawrence Pih, in an interview to the DCI.
Production costs were unencumbered by the rise in the dollar, energy prices and the price of cereal quality, which is more scarce in the domestic market. Survey of the Center for advanced studies in applied economics (Cepea) indicates that the bread-like product closed to $ 647,53 per tonne, last Tuesday (4) in the State of Paraná. PIH points out that, in practice, the best quality cereal reaches cost $ 680.
With this, it is already possible to glimpse a horizon of larger values for the flour, even at a time of falling demand. "The goal is to pass between 10% and 15% of the increase to the final product. We will not bear the injury for a long time, "he says.
Mills that choose to get financing with trading companies, since the taking of credit with financial institutions is also more restricted, surplus may have difficulty to pass on the costs of production.
In farming
The concern, both national and international, is about the climate issue. In Brazil, the biggest problems happened in Gaucho, who suffered with several rainy days.
PIH says that cereal paranaense felt minor effects, but its quality will be compromised. "The wheat of Paraná is very important for their difference of quality", says the President.
The company's informative technical assistance and Rural extension (Emater-RS) says that 5% of the total estimated for this crop, 46 thousand hectares, had some kind of damage with respect to soil erosion and loss of inputs such as seeds and fertilizers, for example.
According to the researchers the Cepea, in recent days there has been a reversal and high temperature were recorded in the South, which can damage the triticultura. In a note, they assert that climatic variations may affect strongly the productivity of crops.
"Gauchos, including Producers, should reduce the planted area in front of the previously estimated due to the rains of July, in order to not delay the cultivation of soybeans", emphasizes the note.
The President of Pacific Mill comments that some industrial units in the North and Northeast are importing the cereal of the United States to ensure a minimum quota of stock quality.
For now, triticultores are geared to the cultural practices of already sown wheat-the incidence of pests and diseases in part of the crops have high production costs. In addition, if a threat to the recovery of the dollar which can raise domestic prices, as it makes the imported.
Outside
Last week the International Grains Council (IGC) has reduced the overall projection for wheat due to worsening climate framework of Canada. Now are estimated 710 million tons, up from the previous forecast of 711 million. The two amounts are inferior to 721 million tonnes harvested in 2014/2015.
The Argentina, main supplier of cereal to Brazil, have prevented planting wheat this year because of dry weather that ruined much of the grain belt of the Pampas, and also by the export quota system which limits shipments to ensure huge domestic demand. This crop should reach 10.5 million tons, down from 13.9 million provided by the Government of the country.