Despite the record supply, demand is firm and prices rise in Brazil

Cepea, October 1 2019 – Despite the record supply in the 2018/19 season, corn prices are on the rise in Brazil. In September, growers stayed away from the market, focused on the weather, which was dry, and on the fast exports pace for corn. In light of that, purchasers reported difficulties to buy new corn batches, which pushed up prices in Brazil.

 

In Campinas (SP), the ESALQ/BM&FBovespa Index (Campinas, SP) for corn increased 5.4%, closing at 38.70 BRL (9.32 USD) per 60-kilo bag on September 30.

 

In general, most of the 2018/19 crop has already been traded. In Mato Grosso, according to Imea, until mid-September, 87.4% of the 2018/19 output and 35% of the 2019/20 had been marketed. In Paraná, the trading pace is fast too. According to Deral/Seab, 61% of the 2018/19 second crop has been traded.

 

Besides the fast trading pace in the Brazilian market, exports performance helped to underpin prices at ports and throughout Brazil.

 

In the field, summer crop sowing is advancing in the main producing regions from Brazil, and farmers are focused on the weather. In Paraná, activities have reached 39% of the estimated area, with 93% of the crops in good conditions and 7%, in average conditions, according to data from Deral/Seab released on Sept. 23.

 

In Rio Grande do Sul, rains have been more frequent, favoring fieldwork and crops conditions. According to Emater, until Sept. 27, 43% of the crops had been sown.

 

(Cepea-Brazil)

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