The National Supply Company (Conab) announced, on Tuesday (18), new announcements for auctions of the Product Outflow Premium (PEP) and the Equalizer Award Paid to Rural Producers (PEPRO) for corn producers in the States of Goiás, Mato Grosso and Mato Grosso do Sul. The auctions will be held this Thursday (20).
This time, the premiums announced by the Company must guarantee the sale of corn at the minimum price set at R$ 19.21 per 60-kilo bag for rural producers in Goiás and Mato Grosso do Sul.
In the last two weeks, Conab had held PEP and PEPRO auctions, but the premiums offered were not enough to guarantee the sale of corn at the minimum price. As a result, the commercialization of the product via these instruments was insignificant.
Therefore, the Brazilian Agriculture and Livestock Confederation (CNA) sent a letter to Minister Blairo Maggi (MAPA) requesting a review of the methodology for calculating premiums, so that the values offered would guarantee the minimum price set by Conab.
On Friday (14), a technical meeting was held between CNA and MAPA. The objective was for MAPA to clarify the methodology adopted and for CNA to reinforce the need for Conab to offer higher premiums, aiming at the effectiveness of this producer support policy.
According to Conab Announcement No. 150 of 07/18/2017, the maximum value of the opening prize for the PEP and PEPRO Auctions on July 20th will be R$ 4.10 per bag for the State of Mato Grosso do Sul. For Goiás the value will be R$ 3.26 per bag.
With these prizes offered, rural producers in these states will be able to participate in auctions to sell part of their harvest at the minimum price.
Source: Agrolink
