After decrease 6 percent in May, Brazilian corn prices got stable in the first fortnight of June. On Friday, June 13th, the ESALQ/BM&F Index (Campinas region) closed at 25.85 reals or 15.80 dollars per bag of 60 kilos, increasing slight 0.28 percent in Real over May 30th. The support came from the increases in international quotations that motivated new export trades in the second semester and from the forecasts of frosts in Paraná state.
According to the USDA, the global 2008/09 soybean crop production should total 775.3 million tons, which represents a reduction compared to the report published in May and a decrease of 1.8 percent over the 2007/08 crop. The consumption should enlarge to 793.1 million tons. Inventories are expected to rise in relation to the previous period, however, the volume should keep close to the lowest historic levels. In Brazil, the Conab increased its forecast for the 2007/08 crop production to 58.4 million tons and remained the consumption at 44 million tons. (Cepea - Brazil)