Even with the corn harvest advance in Brazil, prices decrease has been less intense. That is because there is an important difference between harvest period and the time when the product was available to trade. Moreover, international prices, which are in high levels, are too linked to the domestic market. The support at the Chicago Mercantile Exchange (CBOT) keeps coming from the higher United States' demand for corn in order to ethanol producing.
Last Friday, Mar 30th, however, the USDA reports pressured down the CBOT, but the levels are still high.
With the futures increase, Brazilian corn growers reduced their supply, betting on higher prices. The CEPEA/ESALQ Index (Campinas region) devaluated 3 percent in Real and only 0.23 percent in dollar in the month, closing at 19.95 reals or 9.68 dollars per bag of 60 kg this Friday, Mar 30th. Brazilian exports keep increasing and should enlarge if the good winter corn crop be confirmed.