Corn market firm and price hikes

Posted by Rafael Moro

Image: Pixabay

The drier weather starting in the second half of March in Central Brazil and in the South Center of the country maintains uncertainties regarding the second corn crop, in the final sowing stage, and contributes to the support of cereal prices in the Brazilian market.

The dollar at higher levels against the Brazilian currency has also weighed in the price of corn, in reais. The quotation of the North American currency went from R$ 5.49 on 3/23 to R$ 5.79 on 3/29. On 4/4 the dollar closed at R$ 5.66.

On the other hand, the advancement of the summer harvest (first harvest) in the country and the more hampered businesses, with the collapse between buyers and sellers, limited the increases in prices.

In the Campinas-SP region, the price of corn rose 9.6% in March, closing at R$ 97.50 per bag of 60 kilos (3/31). Currently, the reference is R$ 98.00 per bag of 60 kilos in the region (6/4).

In the annual comparison, corn is costing 69.0% more this year.

For the short and medium term (April), the expectation is for firm prices for corn on the domestic market, with market agents keeping an eye on the climate and the situation of second crop crops in the country.

Source: Notícias Agrículas

This text was automatically translated from Portuguese.