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The previous week was marked by the continuation of planting of the 2nd corn crop.
In the near future, demand for North American corn should continue to be strong, considering that, at this moment, the USA has satisfactory and easily accessible volumes to negotiate. According to Ruan Sene, market analyst at Grão Direto, Brazil should regain its prominence in the second half of the year, with the harvest of the 2nd corn crop.
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“The demand for North American corn should remain strong, considering that, at this moment, the USA has satisfactory and easily accessible volumes (compared to Ukraine) to negotiate. Brazil should resume its prominence in the second half of the year, with the harvest of the 2nd corn crop. On Friday (03/31), the USDA will release updates on the 2023/24 corn planting intention numbers in the USA, which may present a decrease in the initially projected area, generating support for Chicago prices. Next month will be marked by the beginning of planting work, sharing the market’s attention with Brazil”, he comments.
The previous week was marked by continued planting of the 2nd corn crop, renewal of the Black Sea export agreement and increased demand for North American corn. “In view of this, Chicago prices ended the week at U$ 6.44 per bushel (+1.42%) for the contract expiring in May/23. The Brazilian physical market had a week of devaluation”, he indicates.
“The planting of 2nd harvest corn continues to evolve, even though it is outside the ideal window. According to the National Supply Company (Conab), it reached 85.1% nationally. Among the states, São Paulo is the one with the greatest delay, with only 50% of planted area, followed by Mato Grosso do Sul, with 63%. If this delay persists until the end of the month, it could result in an increase in the sorghum area to the detriment of corn, due to climate risk factors”, he concludes.
Source: Leonardo Gottems | agrolink
