Cepea, December 5, 2019 – Corn prices increased more than 14% in some Brazilian regions in November, reflecting the firm demand and sellers’ retraction. Quotes were lower at ports than in the remaining areas of the country, leading the few active sellers to allocate corn to the domestic market. Firm demand and expectations for lower supply in the coming weeks also underpinned the future contracts traded at B3 (São Paulo Stock Exchange).
Many purchasers needed to replenish inventories, but claimed difficulties to find large batches. Thus, these agents ended up paying higher prices for the product. Sellers, in turn, were away from the spot market, expecting quotes to increase in the coming weeks.
Between October 31 and November 29, the ESALQ/BM&FBovespa Index for corn (Campinas, SP) increased 14.08%, closing at 47.88 BRL (11.31 USD) per 60-kilo bag on Nov. 29. On Nov. 28, the Index reached 48.03 BRL/bag (11.40 USD/bag), the highest nominal level in the year. The average Index in November, at 44.54 BRL/60-kilo bag, is the highest since August/16, in nominal terms.
The trading pace for the current crop is fast. Until mid-November, 95.4% of the second crop output from Mato Grosso had been traded, according to Imea. In Paraná, 74% of the second crop has been traded, according to Seab/Deral.
FIELD – Frequent rains in November favored summer crops in all Brazilian regions and in Argentina. In Rio Grande do Sul, data from Emater indicated that sowing was favored by the weather and good water reservoirs in most regions. Data from Emater indicate that 84% of the area forecast for Rio Grande do Sul has been sown.
In Paraná, crops are developing well. Seab/Deral indicates that sowing ended in the first fortnight of November, with 10% of the crops in average conditions and 90%, in good conditions.