Over presses and mills will run high for flour

With the increase in power rates, on freight and the prospect of reduced planting area, industry costs have risen more than 40% and must be passed on. "You can expect 25% increase in flour between the next 30 and 60 days," says the President of Pacific Mill, Lawrence Pih.
The latest survey by the national supply company (Conab) estimated a production of 5.9 million tonnes for corn this year, 6.8 percent higher than the volume of last year. However, industry representatives heard by the DCI project a decrease of at least 2% in planted area in Paraná, largest State producer of culture.
Difficulties
"I have little wheat in Paraná, in front of a demand around eight million tonnes, the Gaucho product does not have the same quality and, moreover, producers are focused on the progress of the crop of soybeans and corn, restricting the marketing of grain", explains the Executive. In this context, there's no other account Pih alternative to the mills in addition to access the international market for imports, now encumbered by high-dollar and Argentina follows as the leading provider.
Outside, the expectation of interest rate increase by the Federal Reserve, the u.s. central bank, has supported the currency in high levels, a fact that, according to Pih, has kept on falling commodity prices. Data from the Center for advanced studies in applied economics (Cepea) show that wheat ended last Thursday (5) to $ 193,01 per tonne, compared to $ 330,62 in the same period last year.
On the side of exports, the Statistics Division and Chief agronomist of the Department of Rural economy (Eral) of the Department of Agriculture of Paraná, Carlos Hugo Godinho, remember that the national wheat shipments are tied to the production of lower quality, as the Gaucho, usually sent to African countries and the Middle East.
In the domestic market, the researchers of the Cepea still highlight that, with the Teamsters ' walkout in part of the Brazilian roads, many mills, primarily in the South, had great difficulty in receiving of raw material. The grinding pace and, consequently, the marketing of cereal and derivatives have been greatly reduced in recent days.
Production
In Paraná, unlike the official projection of Conab, of 3.7 million tons, Gandhi believes that it is possible to reach 4.1 million. He asserts that as the planting window that begins in the next few weeks, it's long, it's hard not to count on a percentage of breakage, but this has not yet been set for the 2014/2015 season. The intensity of rainfall and climate are also decisive for the final results. Even so, the volume estimated by Eral is a record for the region.
In Rio Grande do Sul, second largest State producer, planting begins a little later, in mid-May, and the development of the crop still depends on the federal Government's tools that will be made available to the productive chain.
"We had a meeting on sectoral Chamber yesterday [Thursday, 5] and the Government has not yet deployed. With that, the tendency is to reduce acreage this year ", says the Chairman of Federation of agriculture wheat do Estado do Rio Grande do Sul (Farsul), Hamilton Garden.
Among the main applications are the increase in minimum prices in effect and mechanisms of marketing support. According to garden, the Minister of Agriculture, Kátia Abreu, will be in Rio Grande do Sul this week for the Expodireto fair and should hear again the productive sector.