Domestic market of corn continues with firm prices, despite improved regional rainfall

The Brazilian domestic market continues to reflect the great profile of export shipments along with a very firm domestic demand. The weather issue is an additional and regional factor facing the delay of planting in several regions and a harvest expected later for the 2020 summer. In addition, there is the profile of planting of the 2020 second crop, which must return to the traditional profile, with seasonal risks such as less rain in the Midwest and frost in the south. All these factors add up to keep growers with slow sales and meeting domestic consumption at higher prices each week. The high flow of exports offers the symptom of shrinking regional supply and price support, which is clearly occurring in Mato Grosso now.

Weather in early November is slightly better regionally. The rains of the last five days occurred in the most problematic range involving the south of Mato Grosso do Sul to Minas Gerais. Rainfall over the week occurred in this production region between 5 and 40 mm. The flow was not uniform, and some localities had good indices and others only passing and thin rainfall. In this context, the situation of the summer crop is still critical regionally. There is no room yet to expect a safe planting.

At this moment, there are soybean replanting, bean losses, and delay in corn planting and replanting in this strip between Mato Grosso do Sul and Minas Gerais. The south and southwest of Paraná to Rio Grande do Sul have regular or even above normal rainfall. In part, this has affected wheat quality in Rio Grande do Sul, which is at full harvest. In Mato Grosso the situation is regular, with routine rainfall last week, which requires continuity of regularity in the coming ones.