The government's threat to remove the import tax on corn from Mercosur is affecting the cereal market, according to T&F Consultoria Agroeconomia. “Since the beginning of this week, when the government began studying the removal of import taxes (TEC, as happens on wheat) on corn, rice and soybeans imported from Mercosur, the Brazilian market has been feeling the impact”, commented the Consultancy.
“Although it increases the available supply, the rise in the dollar discourages operations at the moment and the slowness of freight from Paraguay, the main supplier of Santa Catarina and Paraná, is another negative point for operations”, added T&F analysts.
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However, it is possible to say that the market is adapting and the increases of between 3 and 5 reais/bag in domestic market prices this Thursday could support imports, even with these inconveniences. “In any case, our recommendation is still to hedge on B3 in São Paulo. Customers who followed our guidance from the beginning today have an average purchase price of around R$ 43.00/bag and are laughing their heads off”, they report.
“Corn imported from Paraguay would arrive in Western Paraná at around R$ 61.61 (62.31); to the West of Santa Catarina around R$ 71.01 (71.42) and to the Far West of SC around R$ 72.69/bag (73.11). The price of Argentine corn fell to R$ 75.34 (75.75) and that of American corn to R$ 75.68 (76.09) in the west of Santa Catarina”, concluded the analysts at T&F Consultoria Agroeconomic.
Source: agrolink
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