Cepea, September 2nd, 2021 – Corn prices faded in most Brazilian regions surveyed by Cepea in August, reflecting the disinterest of purchasers, who expect prices to decrease more. As regards sellers, as the harvesting advances and supply increases in the national spot market, some of them become more willing to lower asking prices, aiming to take advantage of the current price levels and make cash flow to pay debts.
Thus, between July 30 and August 31, the ESALQ/BM&FBovespa Index for corn (Campinas, SP) dropped by 6.5%, closing at 94.76 BRL (18.31 USD)/60-kilo bag on August 31. At B3 (São Paulo Stock Exchange), contracts dropped too.
The disinterest of purchasers is also linked to the current low liquidity at Brazilian ports, where prices have been lower than that in the interior of the country. On the other hand, corn imports were high in August.
CROPS – Farmers are waiting for the return of rains in most Brazilian regions in order to begin preparing for the summer crop. As for the harvesting of the second crop, in Mato Grosso, activities had reached 99.69% of the area until August 20, according to Imea.
In Paraná, the weather was favoring activities late in the month, and, according to Seab/Deral, 64% of the second crop (2020/21) had been harvested until August 23. According to Seab/Deral, 5% of crops are in good conditions; 37%, in average conditions; and 58%, in bad conditions. A report from Seab has revised down production estimates in PR, to 5.9 million tons, 186 thousand tons down from that reported in July.
In Mato Grosso do Sul, according to Famasul, the harvesting had reached 58% of the state area until August 20. In Rio Grande do Sul, corn sowing was beginning to advance faster in late August, majorly in irrigated areas. Many farmers anticipated sowing to take advantage of the rains forecast for the coming days.