Corn prices on the Brazilian market continue to rise, according to the daily survey by the Center for Advanced Studies in Applied Economics (Cepea). According to information released by T&F Consultoria Agroeconomia, the supply crisis in Asia, caused by African Swine Fever, still remains a fundamental factor for prices.
“The significant increases in corn and meat exports, with the opening of new markets and due to the supply crisis caused by the swine fever outbreak, throughout Asia (not just in China), are forcing up the prices of the grain in Brazil. Even though, in the domestic market, buyers are controlling their purchases, trying to contain the rise in prices, prices are on an upward trend, due to a possible reduction in stocks from next January”, said T&F.
On the other hand, however, it is possible to note that the majority of sellers are focused on planting summer crops and, given the expectation of an increase in price, they also decided to stay out of the market, forcing the increase, he reported. “As a result, combined with the upward movement of the dollar from the previous week (today's drop was not enough to contain the upward pressure) caused the average price calculated by Cepea to record a new high of 1.21%, at R$ 42.82, in the Campinas region, the main source of reference for Brazilian corn”, he added.
“In Rio Grande do Sul, the week started with a closed market, with occasional deals for small buyers and for egg and pig farms, with prices in the range between R$ 42.00 and R$ 43.00, that is, stable in relation to the week previous. Market sources indicate that large buyers are bringing corn from MS, PR, MT and Paraguay, with deals made before the harvest being delivered now. The operators believe that, with the start of the harvest, on 12/20, 'the window must close' and consequently the return freight from PR will also close”, he concluded.
Source: agrolink
