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Cereal prices have been moving sideways on the Stock Exchange and in physical markets.
Prices in the Brazilian corn market remain under pressure due to a surplus of five million tons (MT) in the export balance. “To date, Brazil has exported around 37.2 MT, against an expectation of 42 MT by the end of the commercial year. As long as this difference of 5 MT is not exported, there will be a surplus on the domestic market, preventing a greater rise in prices”, points out TF Agroeconomic Consulting.
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Even so, they point out, prices paid to producers rose by around 1.34% in Paraná and Santa Catarina: “In Rio Grande do Sul, where they are the highest in Brazil, they remained unchanged. At B3, however, there has been a decline of 0.50% this month of December so far and in Cepea's monitoring, there has been an appreciation of just 0.28% in the month”.
FACTORS AFFECTING CORN TODAY, according to the TF:
The) US national corn base remains strongest in 20 years;
B) Drought continues in Argentina and southern Brazil;
w) An estimated 9 million tons of corn are still in Ukraine's fields;
d) There is talk of a mild recession in the 1st quarter due to higher interest rates, which could impact demand for food and fuel;
B) The Buenos Aires Grain Exchange said corn planting in Argentina is 43% complete, with the crop rated at (just) 18% good to excellent.
FUNDS BET ON THE RISE
Also according to TF, the CoT weekly report showed that the funds had 127,106 net long contracts on December 13: “This is the volume of net long contracts of 6,893 contracts more during the week due to short covering. Commercial corn traders closed another 33,000 short hedges, reducing their net selling by 11,000 to 367,770 contracts.”
Source: Leonardo Gottems | agrolink
