Corn: climate challenges generate uncertainty and impact production and prices, worrying producers in Brazil.

Milho: desafios climáticos geram incertezas e impactam a produção e os preços preocupando os produtores no Brasil.
Image: Freepik

Weather conditions in Brazil continue to be a concern for the corn. Previously, negotiations were directly impacted, generating a scenario of caution in the production chain. According to information from collaborators at the Center for Advanced Studies in Applied Economics (Cepea), excess rainfall in the south of the country is reducing productivity expectations.

However, the lack of humidity and high temperatures in the Midwest are causing delays in soybean sowing. Therefore, this may limit the window considered ideal for corn-related activities. Given the panorama, it is crucial to closely monitor climate developments to make decisions in the market.

The combination of these climatic factors has created a challenging environment for producers, directly affecting supply and demand.

The decrease in productivity expectations in the South and delays in sowing in the Central-West have led consumers to become more active in the spot market. Concern about the possibility of a reduction in supply and potential positive price adjustments motivates the movement.

Meanwhile, sellers are adopting a more cautious stance, distancing themselves from negotiations and believing in the appreciation of corn. Uncertainty regarding future climate conditions and their impact on future harvests has led producers to wait for a more favorable scenario for marketing.

Source: agrolink | Aline Merladete

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