Corn prices keep rising

Posted by Marina
Corn prices in the Brazilian market continue to rise, according to a daily survey by the Center for Advanced Studies in Applied Economics (Cepea). According to information released by T&F Agroeconomic Consulting, the supply crisis in Asia caused by the African Swine Fever is still a key factor in prices.

“Significant increases in corn and meat exports, with the opening of new markets and because of the supply crisis caused by the swine fever outbreak across Asia (not just China), are pushing up the prices of the grain in Brazil. Even though buyers in the domestic market are controlling their purchases trying to contain rising prices, prices are on an upward trend due to a possible reduction in inventories starting next January, ”T&F said.

On the other hand, however, it can be noted that most sellers are focused on planting summer crops and, in view of the expectation of high prices, also decided to stay out of the market, forcing the high, he said. “With this, together with the upward movement of the dollar from the previous week (today's fall was not enough to contain upward pressure), Cepea's average prices recorded a new high of 1.21%, at R $ 42. , 82, in the Campinas region, the main source of reference for Brazilian maize ”, he added.

“In Rio Grande do Sul, the week began with a stalled market, with occasional deals for small buyers and for egg and pork farms, with prices in the range of R $ 42.00 to R $ 43.00, ie stable in relation to the previous week. Market sources indicate that large buyers are bringing corn from MS, PR, MT and Paraguay, with pre-harvest deals being delivered now. Operators believe that with the start of harvest on 12/20, 'the window should close' and consequently closing also the return freight from PR ”, he concluded.

Source: Agrolink