Export parity limits decreases in Brazil

Even with the corn harvest advance in Brazil, prices moved down with less power during the end of April. In average, corn values received by growers dropped 1.2 percent in Real between April 16th and 30th. In trade between companies, the decrease was of 6.3 percent in Real.

That is because prices are very close to the export parity (inferior limit of prices in the domestic market), since the decreases were more expressive in the previous periods. In the last 60 days, for example, the decrease was of 10.5 percent in Real considering prices received by growers and of 10 percent in trade between companies.

In this context, even with the soft corn futures decrease at the CBOT and the valuation of the Real against the dollar, a significant volume of exports was settled to be delivered in April and May. It means that exports are already becoming more attractive than domestic trades.

Regarding the Brazilian winter corn crop, rainfalls have been contributing for the good development.

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