Several factors are expected to mark the week on the market, impacting corn prices. One of these factors is the geopolitical conflict involving Russia and Ukraine. Although there has been a certain “normalization” in this conflict after the attacks between the two countries, any new movement in these regions could increase the volatility of corn prices in Chicago.
Additionally, concerns about weather conditions continue to influence the corn market. After a week with little rain and high temperatures, the forecast is that these weather conditions will continue, which increases concerns about corn production.
It is important to observe the quality of North American crops. Due to irregular rains and high temperatures, the quality of crops classified as good/excellent is expected to decline further this week.
Perspectives for Corn Exports and Harvest in Brazil
Brazilian corn exports are also on investors' radar. Although Secex does not officially update, corn exports are expected to increase in September, potentially exceeding 6.42 million tons in 2022.
In Brazil, climate forecasts indicate the presence of rain in several regions of the country. This could affect the pace of the harvest, but there are no excessive concerns at this time.
According to the expert, the tendency is for corn prices to continue to depreciate. This is mainly due to the evolution of the harvest in Brazil, which is in full swing. The increasing supply of corn on the market could put downward pressure on prices.
In summary, a combination of factors will influence the corn market this week, including geopolitical conflict, weather conditions, crop quality, Brazilian exports and the evolution of the harvest. Investors should pay attention to these elements to make informed decisions about their positions in the corn market.
Source: Seane Lennon | agrolink
