Industry News
Brazil’s pork producers choose wheat as corn prices soar
Pig and poultry producers in Brazil have been buying wheat in the futures market instead of corn in order to avoid higher feeding costs. The reason is the very high price for corn, which forms the main input for animal feed in Brazil.
According to the Brazilian Center for Advanced Studies on Applied Economy(CEPEA), part of the University of São Paulo, corn prices have jumped from US$ 8.90 to US$ 19.06 per bag of 60 kg in 1 year, or 114.1% more, since May 2020.
On the other hand, wheat prices have “just” raised 39.1%, growing from US$ 224.80 to US$ 312.74 per tonne. The grain can totally replace corn as feed for pigs and poultry.
Just like in Brazil, US corn future contracts reached their highest level in nearly 8 years recently. Cold weather in the US also added to the price hike.
Published at 2021/07/03