Corn prices on the Chicago Board of Trade hit lows of USD 3.10 a bushel last week. The information contained so far in the corn demand environment, with the stoppage of etanol and meat industries, is mostly priced. A resumption of economic activity, albeit at a slower pace, could change this more worrying environment about employment and domestic and global demand. The environment for corn prices on the CBOT is the worst possible at the moment. At first, one third of US demand is in process of disruption. After the squeeze in crude oil prices over the week and its maintenance below USD 20 a barrel, the situation of ethanol industries in the United States deteriorated even further. This is a process that is added to the discreet demand to further cut production. Fortunately, US meat exports are strong, which limits this retraction.
In general, therefore, the US domestic demand factor is priced. Some variables, however, can generate diferente environments in other markets and competitors. Last week, for example, Mexico resumed purchases in the United States, being one of the top importers of Brazilian corn and which will probably buy little from Brazil this year. Moreover, the cut in the corn crush for ethanol may lower the DDG supply in the local and global markets, since the United States exports this by-product.