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Despite the off-season period in Mato Grosso, in which a drop in prices in the road freight market would be expected, in accordance with the seasonality of the harvest and the historical series, at the moment this is not the scenario observed in the state. According to the Logistics Bulletin, from the National Supply Company (Conab), not only do prices not fall in the state's road freight market, but there is also a record of occasional increases on some routes and, according to the sector, there is the prospect of that the upward movement in prices will be accentuated from November onwards, even before the start of the soybean harvest.
There are several factors that explain this warming. Firstly, it is important to highlight the relevant logistical flow for the disposal of the 2020/21 harvest, involving not only corn, but also the remaining soybeans, in order to free up space for the 2021/22 soybean harvest. With regard to corn, after a few months of greater service to the domestic market, the export flow has resumed and the state's corn has currently served both the domestic and foreign markets.
The fact that the prospects for the next soybean harvest are the best possible has accelerated the flow as the need to dispose of the product quickly and to free up space in warehouses for the excellent soybean harvest that is projected increases, which will be the largest in the history of Mato Grosso. The good progress of planting work also signals that harvesting will begin in December, with a large volume to be transported in January, meaning a large supply inflow is expected in the near future. The proximity to the end of the year and the arrival of a large harvest exert pressure to remove the remaining product.
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Another point that explains the initial increase, as well as the tendency for the increase to increase in the coming months, is related to the increase in diesel. Fuel represents a major element in the transport company's costs and, at current prices, there are reports that some trucks may stop running in the coming weeks. This is not a strike or blockade, but rather the occasional choice not to run, on the part of some transport companies, considering that the freight price would not cover all the costs involved, such as depreciation and fuel. This situation could culminate in an increase in prices in the coming months, as the soybean harvest is imminent.
Behavior in other states
In Mato Grosso do Sul, the agricultural freight market during the month of October did not show significant changes in relation to the month of September. With the end of winter crop harvests, lower business volume due to expectations regarding grain prices and the off-season period, there is a lower demand for vehicles to transport grain. The survey of freight prices for October demonstrates a certain stability in prices, with a slight negative variation in relation to the month of September.
In Goiás, prices collected for the month of October were very similar to the two previous months. Few shipments for export and also for the domestic market destined for other states. No shipments destined for the ports of Baixada Santos and Paranaguá. The few items for export left through Uberaba. The biggest movement was, as in September, companies in Goiás removing grain destined for their industries in Uberlândia and also for the municipalities of Rio Verde and Jataí.
The transport market in the Federal District region operated with low volumes in September for grain routes destined for ports, with a view to the completion of the second harvest corn harvest and also soybeans. According to Conab's grain report in October, the state is in the corn sowing phase.
In Paraná, the price survey for transport services in October showed a drop for some routes compared to last month, mainly for routes to the port of Paranaguá originating from Campo Mourão and Ponta Grossa. Routes originating from Toledo and Cascavel showed a slight increase.
By: Eliza Maliszewski | agrolink
