Pressured by the drop in demand from the meat sector and the “low” exchange rate, average corn prices closed the day again down 0.41% in the country's main reference market, Campinas. As a result, the month's accumulated losses amount to 3.73%, with the average price set at R$ 36.40.
According to analyst Luiz Fernando Pacheco, from T&F Consultoria Agroeconomic, the Dollar is lower than it has ever been, but still very high compared to what it should be when the reforms are ready in the second half of the year, around R$ 3.60 .
The USDA report released today increased world ending stocks by 5.48 MT, from 308.53 MT to 314.01 MT, which is negative for prices in the medium and long term. The American business year, on which the report is based, ends June 30, but the ending inventory of one year is the beginning inventory of the next.
“The positive point is that, for Brazil, the USDA reduced stocks by 310 thousand tons, from 7.12 MT to 6.81 MT, which could be positive for domestic prices. It turns out that, unlike ANEC, the USDA still maintains Brazilian exports at 31 MT”, comments Pacheco.
“We need to follow the Line-Up of the ships’ schedule to see who is right. As we showed yesterday, in December 2018 there were ships appointed to load 3,001,613.99 tons of Brazilian wheat; in January, to 2,373,088.00 tons, in February there was a sharp drop to 620,153.00 tons; in March it fell even further to 518,531.81 tons and on April 5th it was 352,722.92 tons”, he concludes.
Source: agrolink | Author: Leonardo Gottems
