Image: Pixabay“The FOB export price of Brazilian corn has been moving sideways for a long time”
According to data released by TF Agroeconomic, corn prices continue to fall in Brazil and this is mainly due to stocks. “Because the country has stocks of between 25-27 million tons still available and will only need 13.5 million until the start of the next harvest. It’s as simple as that,” he comments.
“This takes all the pressure off demand and puts pressure on supply and lowers prices. Even if it maintains an export rate of 6.7 million tons, equal to the volume exported in September, which was the second highest of the year, it would only consume 20 MT, leaving around 7 million to start the new harvest. This means that domestic buyers do not need to increase prices to obtain supplies”, he adds.
{module Form RD}
Weekly CFTC data recorded that the Funds settled 57,000 net corn call contracts for a total of 176,831 net on 11/15. “This was the weakest net position since 8/16. Commercials also reduced exposure, closing 36.4 thousand short positions for a net total of 424,628 short positions at Tuesday's close”, he indicates.
“The FOB export price of Brazilian corn has been moving sideways for some time, between US$ 290-US$300/tonne, given the great availability of the current harvest. The price of Argentine corn is falling, oscillating between US$ 310-US$ 300/tonne. This Friday, the prices of the two origins are approaching, closing at US$ 301 for the Argentine and US$ 299 for the Brazilian. With little availability from our neighbors, international demand, which was concentrated in Ukraine and the USA, started looking at the Brazilian market”, he concludes.
Source: Leonardo Gottems | agrolink
