Brazil, one of the world’s biggest wheat importers, could significantly reduce its dependance to foreign crops as record export demand provides farmers with the funds to expand their planting areas.

Brazil exported 2.5 MMT of wheat between December and March, a record level sparked by the Russian invasion of Ukraine and driven by a good harvest in 2021.

Market participants see the current 2.8 Mn hectares of sown area double in the coming years and eventually meet domestic consumption needs of approximately 12.7 MMT a year. Brazil imports 50% of its wheat needs, mostly stemming from Argentina.

Farmers have shown notable interest in switching to wheat as export opportunities strengthen the attractiveness of the crop. Brazil’s Rio Grande do Sul could see a 30% expansion of planted area this year, considering 0.6 MMT of wheat have already been sold in advance from this region.