Attentions for the winter crop

In January start both the corn summer crop harvest and also the winter crop planting activities in Brazil. Around 47 percent of the domestic summer production is concentrated in the South region (Parana, Rio Grande do Sul e Santa Catarina states).

According to the National Company for Food Supply (Conab), Brazilian summer crop production should enlarge 5.7 percent. For the winter corn crop, the increase is forecast at 0.6 percent. The higher yield is linked to better weather conditions, which helped the culture development during the last trimester of 2006.

In the last year, Brazil exported 3.94 million tons, almost three times the volume shipped in 2005. Because of the corn production raise, exports should increase in an optimistic scenario.

During 2007, the grain's global demand should enlarge even more, especially in the United States - for ethanol production. At the Chicago Mercantile Exchange (CBOT), corn has averaged, during December/06, more than 140.00 dollars per ton, the highest level since August of 1996. This value is 82.13 percent superior to the average of Dec/05.

Higher international prices boost Brazilian corn export parity. This expectation promises attractive values for the domestic market during 2007. For now, prices have been keeping stable in great part of regions researched by Cepea - in high level. From the second quince of January on, the market tends to work in a faster pace.


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