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Brazil, a top wheat importer, has made deals to export around 120,000 tonnes of soft wheat, industry sources said on Friday, even as its own food industry is pressured by wheat export restrictions from its main supplier Argentina. Last year Brazil imported around 6 million tonnes of wheat, mostly from neighbouring Argentina, but habitually exports a portion of its own wheat production. Last year its shipments abroad totalled 750,000 tonnes.
Rui Polidoro, head of the Federation of Agricultural Co-operatives in the country's southernmost Rio Grande do Sul state, said 120,000 tonnes of the soft variety of wheat, commonly used to bake sweet foods, had been shipped or was due to be. In January, 25,000 tonnes went to Tanzania and 58,000 tonnes will be en route for Pakistan this month - both uncommon destinations for Brazil's wheat exporters.
Though Brazil is expected to turn to the US and Canada to make up a shortfall in hard wheat which is mainly used for bread making, after Argentina suspended exports because of a poor harvest, it will be helped by large domestic production this year.

Copyright Reuters, 2009

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