During the beginning of June, two bad information impacted the Brazilian corn market. The first one was the new USDA report about the North-American corn crop production, which enlarged from 316.5 (June's estimative) to 326.15 million tons. The global production was forecast at 777.10 million tons against the 767.96 million tons estimated previously. The global consumption, in turn, is forecast to reduce, from 770.84 to 769.70 million tons. The other negative new was the valuation of the Real against the dollar, of 2.1 percent in the last seven days - the exchange rate reached the level from October 2000.
These factors and the harvest period in Brazil pressed corn prices down in the domestic market. According to the National Company for Food Supply (Conab), until the end of July, around 40 percent of the winter corn production should be harvested.
The corn delivered in the Paranaguá port devaluated 6.5 percent in Real between June 29th and July 16th. The ESALQ/BM&F Index (Campinas region) downed 1.8 percent in Real, closing at 18.66 reals or 9.98 dollars per bag of 60 kilos on Monday, July 16th.