Brazilian corn prices keep moving up, reaching the highest levels since 2003 in Campinas city (Sao Paulo state). Between October 31st and November 30th, the ESALQ/BM&F Index for corn (Campinas city, SP, area of consumption, trades between companies) increased 15 percent, averaging 11.45 dollars per bag of 60 kilos on Thursday, Nov 30.
As usual, corn prices reach the years' highest levels in November, decreasing in December. Growers keep retreated, betting on higher values in domestic and international markets.
The main reasons for continuous corn prices increase are the estimative of stable crop production during the next season in Brazil and lower corn exports of the United States, which could help the demand from other countries, such as Argentina and Brazil.
The upward trend is also related to the highest value of export parity, helped by the increasing international values. At the Chicago Board of Trade (CBOT), contracts have already overtaken 3.70 dollars per bushel, the maximum nominal level since September of 1996.
In this context, Brazilian buyers started to settle anticipated trades both in the domestic and in the international markets.
Regarding the summer corn crop (2006/07), planting activities have been presenting a good development, helped by the good weather.