Index hits 53 BRL/bag and nears the nominal record in all Cepea series

Cepea, March 3, 2020 – Despite the fast harvesting pace for the first crop corn, prices are on the rise in Brazil, primarily in the typical consuming regions, such as São Paulo and Santa Catarina.

 

In February (Jan. 31 – Feb. 28), the ESALQ/BM&FBovespa Index (Campinas, SP) rose 4.1%, closing at 53.25 BRL (11.85 USD) per 60-kilo bag on February 28, near the nominal record in all Cepea series, at 53.91 BRL/bag, registered in early June/2016. In general, last month, purchasers were more interested in closing deals than sellers were.

 

In light of the sharp price rises this year and the consequent purchasers’ difficulty to buy the product, on Feb. 27, the Brazilian government held the first auction to sell corn, aiming to meet the demand from poultry and hog growers, primarily, as well as cooperatives and feed companies. The government supplied 50 thousand tons of the corn stocked by Conab (Brazil’s National Company for Food Supply) in Mato Grosso. All batches were sold between 33 BRL and 38.5 BRL per 60-kilo bag.

 

As regards international sales, Brazilian corn exports were losing strength at the end of the month, while soybean shipments were increasing. In the first 15 working days of February, Brazilian corn exports totaled only 373 thousand tons, much less than the 1.5 million tons from February/19. Besides, as the summer corn and soybean harvestings are in full swing, agents have started a competition for logistics.

 

FIELD – In Mato Grosso, sowing of the second crop corn advanced in February, favored by the dry weather. According to Imea/MT, 79.61% of the total estimated area has been sown, against 86.56% in the same period last year. In Paraná, until February 26, 61% of the area estimated for the second crop corn had been sown, according to Seab/Deral. As regards the first crop corn, 37% of the production estimated for the state has been harvested.

 

In Rio Grande do Sul, despite the weather issues early in the season, the crops already harvested have good productivity and quality. According to Emater, until February 27, half of the area had been harvested in that state.

 

USDA – According to data released by the USDA on February 20, the area allocated to corn crops in the 2020/21 world season should be 4.8% (1.7 million hectares) larger than that in the previous season, at 38 million hectares.

 

(Cepea-Brazil)

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