Stonex Cuts Brazil’S 2024/25 Wheat Production Forecast To 8.59 Million Tons
Date
5/10/2024 7:00:08 PM
(MENAFN- The Rio Times) StoneX revised its projection for Brazil's 2024/25 wheat harvest, reducing expected output by 6.8%, from 9.22 to 8.59 million tons.
Recent flooding in Rio Grande do Sul devastated infrastructure and lives, leading StoneX to trim the state's projected wheat planting area by 200,000 hectares.
Such losses will likely worsen due to logistical and financial issues.
Damaged roads and bridges hinder efficient transportation, complicating both supply chains and port access.
Meanwhile, three consecutive underperforming summer harvests have financially weakened farmers, reducing their investments in wheat cultivation. This diminishes productivity and lowers yields.
Western Santa Catarina, a significant wheat-producing region, has also seen a reduced production capacity.
These challenges forced Stone to revise its wheat import forecasts upward.
Brazil already lacks sufficient surplus for wheat exports, so increased imports will become essential.
Expected imports are now 6.25 million tons, up from the earlier estimate of 5.71 million tons.
Furthermore, projections for seed usage and domestic consumption saw downward adjustments.
Seed demand estimates declined by nearly 7%. Domestic consumption remains uncertain, given unpredictable market conditions.
StoneX, amid uncertainty, cut overall supply by 0.6%, highlighting the impact of natural disasters and market volatility on Brazil's wheat sector.
Accurate forecasting becomes essential, given the need to shape import strategies and supply chain planning.
Policymakers and stakeholders must address logistical, financial, and environmental challenges.
Each of these factors affects Brazil's wheat production, which in turn will influence global markets and the nation's economic stability.
Effective strategies will require cooperation across sectors to ensure a stable, resilient supply chain amid these ongoing challenges.
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