Porto Alegre, July 12, 2021 – On the next 16th, SAFRAS & Mercado will update the general picture of Brazilian production and disclose the first planting intentions report for the 21/22 season. After ten days of the occurrence of frosts that devastated second-crop regions, unfortunately, losses are now accentuated not only in quantity but also in quality.
As SAFRAS pointed out in its last issue, the sequence of frosts for four days in Paraná, Mato Grosso do Sul, São Paulo, and Paraguay caused different kinds of losses depending on crop stage. A large portion of plantations still had moisture levels above 25%, and frost effects will be felt when the crop passes through dryers in regional warehouses.
Specific weight loss, higher level of fungi, and graining problems define a potential loss that will not be measured in the field, but in dryers. The occurrences are no surprise to the market, and losses should not be regarded only as modest. This evaluation error, especially with the information coming from the government, should not occur now. This would bring evaluation and strategy distortions in the consumer sector. The path seems to be natural for greater use of wheat in feedstuff, as well as the search for Argentine corn, now more affordable.