Good morning! This week, how the war in Ukraine gave a boost to Brazilian wheat. The drop in value of Brazil’s minimum wage. Vale’s deal with Tesla. And the battle for Telegram.
Brazil betting on wheat
Traditionally a massive importer of wheat, Brazil broke all export records for the cereal in Q1 2022 at 2.2 million tons— as local producers try to cash in on soaring prices due to the war in Ukraine. The conflict in Eastern Europe disrupted the wheat trade, as Russia and Ukraine are the world’s first- and sixth-largest exporters of the product, respectively.
- Wheat markets have also been rattled by falling harvest estimates in India, where a heat wave has killed between 10 and 15 percent of crops so far.
Why it matters. According to the Brazilian Agricultural Research Corporation (Embrapa), the area destined for wheat plantations in Brazil’s Southeast and Center-West will rise by 11 percent this year, to 280,000 hectares.
Strategy. Since 2016, Embrapa has encouraged Brazilian producers to increase their wheat crops. This year’s spectacular price surge was more persuasive still.
Bold predictions. Jorge Lemainski, head of Embrapa’s wheat division, says Brazil has the potential to become a massive wheat producer, capable of meeting...