In April, the Brazilian corn prices were the lowest since 2002 (in nominal terms). From that period on, prices have been recovering points, keeping at better levels (6.00 to 7.00 dollars per bag of 60 kilos). Six factors contribute to that:
- Projections of a reduced crop production in 2006/07;
- Higher international prices (better demand for ethanol production in US);
- The Real depreciation in relation to the dollar since May 10;
- The government support program;
- The dry weather in Brazilian producing areas;
- The retreat position of growers in reason of the protests organized by the rural sector.