July 21, 2009

Brazilian buyers have been boosting their wheat imports from the US as a result of favourable foreign-exchange conditions, business daily Valor Economico reported Monday (July 20). 

"There would be room for even stronger imports, but Brazilian mills are generally well stocked," Valor quoted Elcio Bento, an analyst at Safra & Mercado, as saying.

Bento said that the Brazilian real's strengthening against the dollar has helped to stimulate wheat imports. One dollar stood at BRL1.90 on Monday.

According to the US Department of Agriculture, US wheat exports to Brazil totalled 51,000 tonnes in the first week of July, Valor reported. This compared with 31,600 tonnes of Brazilian purchases of US wheat for the six months from January to June, according to Brazil's Bureau of Foreign Trade, the business daily said.

The increase comes despite a 10 percent tariff imposed on wheat imports by the Mercosul trade bloc and higher freight costs, Valor said.

Domestic Brazilian wheat prices may fall in August when the local wheat harvest begins, discouraging the purchase of US wheat, the business daily said.