Brazilian government announced that they will deliver stocks, starting on November 7th. The goal is to guarantee the domestic supply, but the effective result is to weaken the upward trend of prices in this off-season period.
Since October 23, the ESALQ/BM&F Index for corn (Campinas city, SP, area of consumption, trades between companies) decreased 1.6 percent, averaging 9.95 dollars per bag of 60 kilos this Wednesday, Nov 1. In relation to the last day of September, however, the Index upped 14.18 percent.
Corn prices have been increasing since September, but they have not reached the minimum official price settled by the government (to cover production costs).
According to Conab (National Company for Food Supply), on October 24, the government had almost 3.8 million tons of corn stocked.