Cepea, May 3, 2021 – Aware of the low inventories from the 2019/20 season and concerned about the development of the crops in the 2020/21 season, Brazilian corn farmers were limiting supply in the domestic spot market in late April. As regards demand, some purchasers needed to replenish inventories in the short term. Thus, corn prices continued on the rise in Brazil, setting real records in many regions.
In general, valuations were not the same in the regions surveyed by Cepea, reflecting local supply and demand conditions. In Paraná, farmers were mostly away from the market, worried about the current low moisture, while the demand for the short term was high. This scenario pushed up corn quotes to levels higher than 105 BRL/bag. In typical consuming regions, such as São Paulo and Santa Catarina, prices remained firm.
Between March 31 and April 30, the ESALQ/BM&FBovespa Index for corn (Campinas, SP) increased by 6.4%, closing at 99.76 BRL (18.36 USD) per 60-kilo bag on April 30.
As regards sales, in Mato Grosso, 72.05% of the crop has been sold, according to Imea. In Paraná, 16% of the second crop has been sold, according to Seab/Deral.
PORTS – At Paranaguá port (PR), corn prices averaged 91 BRL/bag in April, while the contracts for the second semester (August/September) were between 77 and 81 BRL/bag. As regards exports, until April 23, Brazilian corn exports had totaled 130.14 thousand tons, against 6.69 thousand tons in April 2020, according to Secex (Foreign Trade Secretariat).
CROPS – In Rio Grande do Sul, the harvesting of the summer crop had reached 82% of the area until April 29, according to Emater/RS. In Paraná, 97% of the state area had been harvested until April 26.
As regards the second crop, the weather in southern and southeastern Brazil in late April was concerning agents. Until April 26, corn sowing was almost over in Paraná, but crops quality decreased. According to Seab/Deral, 62% of crops were in good conditions in the week between April 19 and 23, against 40% between April 26 and 30. In São Paulo and in Minas Gerais, activities have ended, according to data from Conab.
In central-western Brazil, the lack of rains and sowing out of the ideal period were concerning farmers too. In Mato Grosso, activities ended in early April, according to Imea. In Mato Grosso do Sul, sowing has ended (three weeks late), and production is expected to total 9 million tons, according to Famasul.