Restricted supply and weather support domestic values

The restricted supply in Brazilian market (reinforced by the lower stocks), and the adverse weather conditions in the Southern region of Brazil supported domestic prices during the first fortnight of April. From March 31st to April 15th, the ESALQ/BM&F Index (Campinas region - Sao Paulo state) increased 3.38 percent in Real, closing at 26.95 reals or 16.01 dollars per bag of 60 kilos on Tuesday, Apr 15th. The low volume of rain in the main producer regions has been a problem for the winter corn crop development.

According to the National Company for Food Supply (Conab) data, published on April 8th, the corn planted area should increase 3.4 percent in the 2007/08 Brazilian crop, totaling 14.53 million hectares. The total corn production should reach 55.3 million tons, rising 7.6 percent. Besides the larger area, the production should be supported by the higher productivity (of 4.1 percent, to 3,804 kilos per hectare, in average).

Regarding the harvesting in Brazil, the Seab/Deral (Paraná Agriculture Secretariat) data of Apr 7th show that 72 percent of the planted area in the summer corn crop was harvested in the state of Paraná. Of this total, 38.4 percent was traded. For the Rio Grande do Sul state, the Emater (Regional Agriculture Office) showed that 56 percent of the total area cultivated was harvested.
(Cepea - Brazil)

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