Wheat Scoop: Excellent Timing for Brazilian Trade Team Visit

Brazil, one of the top five wheat importers in the world, is a sophisticated wheat buyer and demands consistent, high-quality wheat to feed its people. The Brazilian team included seven people who collectively, are responsible for buying 70% of the country’s imported wheat. U.S. Wheat Associates, a farmer-funded market development organization, organized the trade team’s visit to the U.S., which included stops in Washington D.C. and Colorado.

“Brazil is a key market for U.S. wheat,” explains Justin Gilpin, CEO of Kansas Wheat. “Normally, Brazil would import wheat from Argentina, a neighboring country in South America. But Argentina has an insufficient supply of wheat and is charging a premium for what it does have to sell.”

During the western Kansas harvest, the team marveled at the quality of this year’s crop. Randall, who serves as an at-large Kansas Wheat Commissioner in western Kansas, hosted the group, taking them to a neighboring farm where a stripper header was used and the wheat was dumped into a bag at the side of the field. A label on each bag described the moisture content, dockage, test weight and protein of the crop. This attention to detail, coupled with high test weights, good protein content and low moisture, piqued the team’s interest.

“The team saw that Kansas farmers are capable of growing a high-quality product. They were very impressed with our wheat,” Randall says. “This year, we have very good wheat in western Kansas.”

Given that Brazil imports about 5 million metric tons of wheat each year, the U.S. is in a good position to provide some of that wheat. Steve Mercer communications specialist with U.S. Wheat, says Brazilian buyers are interested in U.S. wheat because they can’t rely on Argentina and other South American countries to meet all their needs.

“U.S. Hard Red Winter wheat prices are very attractive and the team saw very good quality wheat on their trip. Plus, Brazil’s currency is strong compared to the U.S. dollar. That means we have a very good chance to sell them quite a bit of HRW this year,” Mercer says.

Edson Csipai, manager of wheat origination for Bunge, has visited the U.S. as a guest of U.S. Wheat Associates several times. He told the Colorado Wheat Administrative Committee that this year, it is interesting to see wheat being harvested in the Kansas and Colorado fields. “In the beginning of harvest, protein seemed to be low but here, things are better. I think we can go to the U.S. to buy Hard Red Winter wheat without a concern,” he says.