Cepea, July 2, 2021 – With purchasers away from the spot market, corn prices continue to fade in most Brazilian regions. These agents have been postponing new acquisitions, expecting new devaluations as the harvesting moves forward. The recent dollar depreciations and price drops at ports influenced corn devaluations in the interior of the country too.
As for sellers, those who do not need cash flow try not to close deals at the moment. In this case, these agents are waiting for prices to rise, based on the possible decrease in the productivity of crops because of the sowing delay and low rainfall. Corn farmers from southern Brazil are also keeping an eye on the forecast for a new cold front in the region in the coming days. At B3, contracts devalued too, but not as sharply as the price drops in the spot market.
CROPS – The dry weather continues favorable to the harvesting. According to Imea, until June 21, 3.91% of the area estimated for Mato Grosso had been harvested. In Paraná, 1% of the area had been harvested. In Mato Grosso do Sul, low rainfall influenced a reduction in the production estimates for the 2020/21 season, to 8.25 million tons, 22.3% down from that in the 2019/20 season.