The climatic problems faced by corn farmers in the United States may bring about a reflection on the price of cereal in the Brazilian market. The analysis is the manager of Agricultural Products of the National Supply Company (Conab), Thomé Guth.
With the expectation of a fall in the US crop, Brazilian grain exports tend to rise. The numbers indicate that more than 25 million tons of the grain have already been traded in advance.
With this scenario, the outlook for the second semester due to the Brazilian super-crop should be reversed due to the new demand and corn prices may reach higher values.
As for the soybean market, according to Thomé Guth, the outlook is uncertain as to exports. This is because, although the trade war between China and the United States still provokes strong demand in Brazilian production, the Asian country faces problems with African swine fever, which has a decrease in the stock and, consequently, the demand for the grain.
Posted by: Marina Carvejani