The National Company for Food Supply (Conab) forecast a corn cultivated area close to the average of the last five years, around 9.28 to 9.50 million hectares. This projection, however, can change between this month and November, during planting activities in Brazil.
The situation is difficult for growers, who are in debt and having lower incomes. Most of them are small farmers that depend basically on the agriculture. Considering that, debts renegotiations, announced by the Bank of Brazil, can also change the projection for the cultivated area. Since growers get more credit, this area should increase.
In the Brazilian market, corn prices keep moving up in this off-season period. The ESALQ/BM&F Index for corn (Campinas city, SP, area of consumption, trades between companies) increased 15.45 percent in relation to the last day of September, averaging 10.07 dollars per bag of 60 kilos on October 18.