Porto Alegre, November 3, 2020 – The rain certainly brings encouragement to growers in much of Brazil. The planting progress of the soybean and summer corn brings some possibility that growers reduce their tensions over the summer result and start to sell lots of available corn even due to the high prices obtained last week. This may seem like a normal movement within a market that has stocks but consolidates high prices due to the retention by growers. Their decision makes the difference in prices.
October corn exports are expected to hit nearly 4.5 million tons. A number within the planning for the period and without surprises. November has 3.7 million tons scheduled. As a result, the accumulated result for the year is 27 million tons, indicating that to reach the target of 34 million tons, December and January will need 3.5 million tons each. It is not an easy volume to be confirmed for this period of the year. Exports may not reach the target expected earlier.
Meanwhile, demand continues for physical corn in the domestic market, both by exporters and domestic buyers. Purchases for the turn of the year and the short term continue. The dollar on the rise and the still erratic weather generate additional domestic tensions. However, it should be clear that there are domestic stocks in most states, and sales decisions by growers can create an environment with some pressure on prices if this selling interest is widespread. Levels of BRL 75/80 in the South and Southeast of Brazil and BRL 70/75 in the Midwest are prices that must be regarded by growers as great results for a year like 2020.
Agência SAFRAS Latam
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