Corn has highs on Monday of more than 3% on B3 due to concerns about lower supply

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Corn futures traded on B3 rose more than 3% at the beginning of the week, still reflecting concerns about lower Brazilian supply. Around 11:25 am (Brasília time), prices rose from 3.08% to 3.35% among the most traded maturities, with the exception of July/21, which had R$ 93.64 per bag, rising 1.73%. September, on the other hand, already had R$ 98.80 and January, R$ 100.50.

“Not even the reduced liquidity due to the holiday in Chicago takes away the upward momentum in prices. Some consultancy houses are already starting to review their final production numbers”, explains Agrinvest Commodities this Monday (5). “The final impacts of the frost are still uncertain, but they bring a strong increase in prices.”

Among them is AgRural, which lowered its estimate for the second corn harvest in the center-south of the country to 54.6 million tons, a volume 5.4 million lower than the previous projection.

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“Part of this reduction of 5.4 million tons was due to negative productivity adjustments caused by drought (the main cause of the cuts carried out in previous months), but this time the main reason for the adjustment was the frost”, informs the bulletin of consultancy.

For Vlamir Brandalizze, despite these increases, the week that starts today should see a more intense harvest and producers holding on to their new sales a little longer.

“The corn market in this new week should see an increasing harvest rate, but everything points to the fact that most producers will hold back on offers to wait for a definition of which direction the market will take, with some continuing to bet on record levels that have already were beaten this year”, says the consultant.

However, he also remembers the possibility of importing the product by buyers from some states where imported corn could prove more competitive.

“What is certain is that we will have a second semester with strong indicators and demand greater than supply”, believes Brandalizze.

By: Carla Mendes | Source: Notícias Agrícolas

July 5, 2021
3:45 pm

Corn has highs on Monday of more than 3% on B3 due to concerns about lower supply

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