One of Brazil’s biggest flourmills, Moinho Pacifico, said an Argentine trader that supplies it with wheat would not be able to meet its contract for January.

Lawrence Pih, chief executive of Pacifico, in an interviewsaid the “default” on delivery would force Brazil’s flourmilling industry to look for wheat elsewhere.

Brazil has been turning to North America to cover its localwheat demand in the absence of sufficient supplies fromneighboring Argentina, where the government has restricted exports.