As its prices have been falling since June, last September corn returned to presenting, in relation to live chicken, approximately the same price parity recorded in mid-1994, when Brazil adopted the real as its monetary standard.
Demonstrating that, corn closed September with an average price of 456% higher than that of August 1994, while the average value reached by live chicken increased by just over 416%.
The difference, in this case, is around 40 percentage points – undoubtedly still high. But it is much more palatable than the difference of more than 285 percentage points recorded last May.
Regarding eggs, however, the price relationship with corn is very different. Because, compared to the evolution of 456% for corn, eggs closed September with an average price just 278% higher than in 1994. Thus, the difference is 178 percentage points.
In any case, the three items lose out on inflation which, according to Fundação Getúlio Vargas' IGP-DI, reached an accumulated variation of 547% in September.
If they had followed inflation, live chicken, eggs and corn would have recorded average prices in September of, respectively, R$3.88/kg, R$124.75/box and R$49.59/bag. However, traded at R$3.10/kg, R$72.84/box and R$42.63/bag, they were also respectively 79.81%, 58.39% and 85.97% of the real value.
The egg, therefore, loses the most. And corn, which loses the least.
Source: Agrolink
