- Posted by Rafael Moro
The corn market on the São Paulo Stock Exchange B3 closed higher again on the last Friday, April 9, with the exception of November, which closed at a strong drop of R$ 4.33/bag. As a result, the May price closed at an increase of R$ 0.65 on the day and R$ 3.08 on the week at R$ 100.51; the one in July advances or R$ 0.64 in the day and R$ 3.23 in the week for R$ 95.85 and the one in September advances or R$ 0.33 in the day and R$ 3.26 in the week for R$ 89.98.
According to the Consultoria TF Agroeconômica, the market is confirming the scarcity that we have been talking about since the end of last year, totally ignoring the monthly report Conab (Companhia Nacional de Abastecimento). Today we learned firsthand what JBS is doing. I am starting to import corn from Argentina, which confirms not only the scarcity, but the possibility of raising prices, market analysts point out.
JBS contacted Agrolink and denied the information that it would be buying corn from Argentina.
As there are still two months before the start of the harvest and availability of our Safrinha,? It is possible that prices will rise even more, although using caution, in view of the high levels at which they are, they add. Check out the set of factors that predict high prices for the 2021 harvest, with good profits for farmers:
* Current Brazilian scarcity, confirmed by the importation of Argentine corn this Friday;
* Climatic problems in Brazil by planting 30% of the off-season outside the appropriate window, which may reduce production;
* High dollar, contributes to the probability of an increase in Brazilian corn exports, reducing domestic availability;
* A strong reduction in inventories in the USA may cause an increase in Brazilian exports, a reduction in domestic availability and maintenance of high and very profitable prices for farmers, also in the 2021 harvest;
* None in the short term;
* In the long run, light pressure on prices during the Safrinha harvest, but that should not take away the good profitability of corn in the 2021 harvest.
By: Leonardo Gottems | Agrolink
This text was automatically translated from Portuguese.