Trading pace is slow in Brazil; domestic prices continue on the rise

Cepea, March 2, 2021 – Corn prices continued on the rise in the Brazilian market in February, due to sellers’ firm stance. Farmers were focused on the harvesting of the summer crop in southern and southeastern Brazil and on the second crop sowing, majorly in the central-western region and in some areas in Paraná State and, thus, were not interested in closing deals. The purchasers with urgent needs ended up paying higher prices for the product.

 

Thus, on Feb. 26, the ESALQ/BM&FBovespa Index for corn (Campinas, SP) closed at 85.41 BRL (15.30 USD) per 60-kilo bag, 2.48% up in the month. On Feb. 25, this Index closed at 85.59 BRL (15.55 USD)/bag, the highest nominal level in the series of Cepea.

 

In general, the trading pace for corn was slow in Brazil in February, with deals being closed sporadically. Besides the current high price levels, agents are facing logistic issues. Freight usually increases at this time of the year, and the availability of trucks is lower because of the soybean harvesting, which stepped up. Cepea collaborators claim that the recent fuel valuations are hampering deals even more.

 

In general, Brazilian agents are focused on the field: the harvesting pace for the summer crops and sowing of the second crop. Although the weather was favorable in late February in most regions, farmers opted for selling soybean, since they need to deliver the product previously purchased.

 

(Cepea-Brazil)

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