Cepea, August 3, 2020 – Corn prices increased in July in most of the regions surveyed by Cepea in Brazil, influenced by the lack of sellers in the market and higher demand. Although the harvesting advanced in Brazil, cooperatives and purchasers reported difficulties to find new batches and, when they got to purchase new batches, only small volumes were available for the short term.
Between June 30 and July 31, the ESALQ/BM&FBovespa increased by 4.6%, closing at 50.79 BRL (9.74 USD) per 60-kilo bag on July 31.
At ports, the trading pace and deliveries were fast. Despite the price oscillations in the international market and the dollar depreciation, purchasers were interested in buying corn for prompt-delivery, which underpinned quotes at Santos (SP) and Paranaguá (PR) ports. In July (23 working days), Brazil exported 2.73 million tons of corn, two-fold the volume shipped in June, according to data from Secex.
CROPS – As the harvesting stepped up in all Brazilian regions last month, corn growers started to report decreases in crops productivity, primarily in Paraná, São Paulo and Mato Grosso do Sul, which was influenced by the drought during crops development. This context added to the fact that a large volume of the output has already been traded should keep supply low.
In Paraná, the harvesting had reached 26% of the area until July 27, according to a report from Seab/Deral. According to Seab, production is estimated at 11.54 million tons, 13% down compared to that previously reported. In Mato Grosso, activities reached 86.68% of the area, according to Imea. In these two states, trades had totaled 42% and 87% until the end of the month.