Brazilian farmers are once again struggling with their winter wheat crop. In their October Crop Report, Conab estimated the 2017 Brazilian wheat crop at 4.8 million tons, which is down 27% from the 6.7 million tons produced in 2016. The reason for the disappointing crop is adverse weather throughout the entire growing season. The weather was too dry early in the growing season then they had a series of frosts and now it is too wet as the crop is being harvested.

As a result, Brazil will need to import at least 7 million tons of wheat if not more depending the quality of the wheat being harvested. Most of those imports will come from Argentina, but the Argentine wheat crop is also disappointing. Traditionally, Brazil imports some of its wheat from Paraguay, but the Paraguayan wheat crop suffered from the same problems as in Brazil and Paraguay is not expected to have any wheat to export. In fact, they may have to import wheat to meet domestic demand.

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