PT | EN | ES |

Withdrawal of corn tax from Mercosur affects market

Posted by Marina

The government's threat to remove the import tax on corn from Mercosur is affecting the cereal market, according to T&F Consultoria Agroecômica. “Since the beginning of this week, when the government started to study the removal of import taxes (TEC, as it happens in wheat) of corn, rice and soy imported from Mercosur, the Brazilian market is feeling the impact”, commented the Consultancy.

"Although the available supply increases, the rise in the dollar discourages operations at the moment and the slowness of freight in Paraguay, the main supplier in Santa Catarina and Paraná, is another negative point for operations," added T&F analysts.

However, it is possible to say that the market adapts and the increases between 3 r 5 reais / bag in the prices of the domestic market this Thursday may support imports, even with these inconveniences. “Anyway, our recommendation is still to hedge B3 in São Paulo. Customers who followed our guidance from the beginning today have an average purchase price of around R $ 43.00 / bag and are laughing for nothing ”, they inform.

“Corn imported from Paraguay would reach West Paraná around R $ 61.61 (62.31); to the West of Santa Catarina around R $ 71.01 (71.42) and to the Far West of SC around R $ 72.69 / bag (73.11). The price of Argentine corn fell to R $ 75.34 (75.75) and that of American corn to R $ 75.68 (76.09) in the west of Santa Catarina ”, concluded the analysts of T&F Consultoria Agroeconômica.

Source: Agrolink