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Concerns about the climate in the corn-producing regions of Brazil and the United States have boosted cereal prices, as recent frosts and forecasts of a new cold front in BR, and the dry and hot climate in the USA, could reduce the productive potential of crops.
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According to the Cepea newsletter, Brazilian sellers are reluctant to negotiate at lower prices, reducing internal liquidity. Furthermore, according to Cepea employees, producers in Brazil are focused on harvesting the second 2020/21 harvest, which remains behind compared to the previous season in all producing regions. Therefore, farmers prioritize deliveries of lots negotiated in advance, waiting for the harvest to advance to account for possible productivity losses. On the consumer side, some have chosen to wait for deliveries and/or a greater harvested volume to return to business. However, those who do not have goods for the short term have accepted the levels requested by sellers, which, in some cases, exceed R$ 100/60 kg bag. In Campinas (SP), the ESALQ/BM&FBovespa Indicator increased 2.7% between July 16th and 23rd, reaching R$ 99.99/sc of 60 kg on Friday, 23rd, the highest nominal value since May 31st this year . From July 1st to 23rd, the Indicator has already accumulated an increase of 11.6%.
By: Aline Merladete | agrolink
