The Itaú BBA consultancy released its Agro Monthly report analyzing the current scenario and pointing out prospects for several Brazilian agricultural products such as soybeans, corn, cotton, sugar, coffee, oranges and animal proteins.
With regard to corn, the consultants pointed out that Brazilian producers continue to have restrictions in making the product available on the market and the advance of the harvest in producing regions should influence prices to fluctuate close to export parity levels.
“Export parity tends to remain at high levels given the devalued exchange rate and the demanding domestic market, in the wake of the positive moment in the animal protein industry, which helps to increase premiums at ports”, states the report.
Looking at the next 2020/21 harvest, Itaú BBA points out that the timing for quotations is also good and that producers are taking the opportunity to intensify the early marketing of this next harvest. In Mato Grosso, for example, 40.9% of this next production has already been negotiated, according to Imea (Mato-Grossense Institute of Agricultural Economics).
For the current harvest, the analysis is that prices rose again in July, even with the harvest of the second harvest advancing and the devaluation of the dollar against the real. “The reason for this comes from the good capitalization of the producer after the good results obtained with soybeans and the high volume of advance marketing, which also takes away the pressure for part of the production, which has not yet been negotiated, to be made available to the market”.
Finally, the report also highlights numbers for the Brazilian corn balance. According to the consultancy's survey, the country started the 2019/20 cycle with 10 million tons of corn in stock, should produce 101 million and import another 1 million, totaling a total supply of 111 million tons. On the consumption side, 35 million tons are estimated for export and another 68 million for internal use, leaving a final stock of 8 million tons, 2 less than the beginning of the harvest.
Source: Notícias Agrícolas
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