The Brazilian Government has decided to increase the minimum price for wheat by 4.6 percent in early July. The new minimum price per sack of 60 kilograms of wheat will be 34.98 Brazilian real (USD 0.67). If the domestic price of wheat goes below this minimum price, the Brazilian Government will pay farmers or cooperatives the difference between the market price and the minimum official price under the Producer’s Equalization Payment Programme (“Pepro”). Wheat is not directly purchased by the Government, it is purchased through a series of auctions organized through CONAB (Companhia Nacional de Abastecimiento) where wheat could be sold to the local market. This measure will help farmers meet the higher costs in producing the 2015 crop now being planted.