Very firm domestic prices of corn with exchange rate and lack of rain

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While the global health and economic environment has intense volatilities, fundamental indicators are still present in agricultural commodities. The economic symptoms may influence the planting decisions by US producers in 2020, and these data will be released on the 31st. Internally, Brazil is experiencing its issue of tight supply and now with an additional tension imposed by the devalued real. In parallel, the weather for the second crop is the natural factor of apprehension this year and deserves a lot of attention at this time due to the drought in some locations, such as in Paraná and Mato Grosso do Sul.

The planting of the 2020 second crop was halted in Paraná, Mato Grosso do Sul and sections of São Paulo past week. Less rainfall in March is causing caution in planting, which is already later, in some locations. Even in the regions that are already fully planted, such as western Paraná and southern Mato Grosso do Sul, the situation starts to be troublesome.