Cepea, November 5, 2020 – The ESALQ/BM&FBovestpa Index for corn (Campinas, SP) hit 82.67 BRL (14.40 USD) per 60-kilo bag on October 28, new real record in the daily series of Cepea, which began in August 2004 (daily prices were deflated by the IGP-DI from September/2020). After that, the Index dropped slightly, closing at 81.89 BRL (14/25 USD)/bag on Oct. 30, still a staggering 28.7% up in the month.
The boost came from the current firm demand, the high price levels in the international market and the strong dollar, which keep the exports’ parity high.
Many purchasers, primarily in São Paulo and in Rio Grande do Sul, reported difficulties to sell large volumes. In central-western Brazil, despite the larger crop, sellers were mostly away from the market, focused on the fast exports pace. In this context, the trading pace was slow in most regions.
At ports, prices increased too, boosted by the firm international demand. In October, the averages for the corn delivered to Paranaguá (PR) and Santos (SP) ports were slightly lower than the ESALQ/BM&FBovespa Index (Campinas, SP). New deals were closed at ports, but trading companies opted for receiving the product previously purchased. Exports in November are expected to be high.
CROPS – Higher rains were registered in some Brazilian regions in late October. In Paraná and in Rio Grande do Sul, however, Cepea collaborators reported that precipitation was irregular and, thus, higher moisture is needed for crops development.
Data released on Oct. 26 by Seab/Deral indicate that 92% of the area estimated for Paraná had been sown. Until the end of October, 81% of the crops sown in this state were in good conditions. In Rio Grande do Sul, data from Emater released on Oct. 29 show that sowing of the summer crop has reached 72% of the area, against 74% in 2019 and 70% on the average of the last five years.