why would a pesticide be ok for other grains but not wheat?

Let me get this straight - the wheat is from the US? How does the Brazil connection and the US come into play? Does Brazil grow wheat over there for the US and this pesticide is not allowed to be put on the US wheat but ok for their own wheat consumption? This is not clear at all on where the wheat originated and where the application of the pesticide is taking place.

ETA: after re-reading the original on Nestle recalling this cereal it states that the cereal is made in Brazil and then sold in the United States. How nice of them to do this - is there some worry about being sued by consumers in this country or something IMO?

I'm thinking it did come from Brazil, but you are right that the cereal could be 'Brazilian made' and the wheat could have been American since we don't have clear labels on processed food.

I am just thinking Brazil since that pesticide can be used on wheat there, even though there is no way to use an effective amount of the pesticide on wheat without it leaving an unsafe residue level.  Laws are really different in South America and they are fighting compliance with our laws on their exports to our country. 

Another downside of free trade since they are trying to use trade agreements against the American food safety system.  Big agri-business of all countries are misusing the system.  We need a fair trade system with labor and environmental protections.

So basically we don't use it in the States because Europe would reject our wheat?