Brazilian market of corn continues with supported prices

The irresponsibility of some sources of information, by pointing to lack of corn in the Brazilian market next January, reflects the misinformation profile that affects both corn growers and consumers in Brazil. The search for consistent information for decision making seems to be the major factor to be worked on in the Brazilian agribusiness segment going forward. Undoubtedly, there is a situation that combines some already known factors such as: high exports, steady domestic demand, and erratic spring weather for price support. As we have pointed out, perhaps the irregular weather is being the driver for the movement of domestic highs in view of the retention by growers. However, there is supply in warehouses, but sales have had higher prices every week. But we are far from a shortage, unless December and January corn exports are surprising.

Domestic corn prices are still at high levels. Another week of high regional prices. It should be noted that prices are rising with existing offers and not in full shortage. The situation is basically focused on the following points, as we have already reported:

– Firm domestic demand, but already previously known;

– Record exports, also suggested between 36/40 million tons since the beginning of the year;

– Cut in the summer crop area, indicated by Safras & Mercado since July for 2019/20;

– Delay in spring rain, with the planting being carried out later;

– Domestic consumers ignoring all the aforementioned factors and not making defensive stock positions.