Domestic market of corn suffers from liquidity and boosts exports with Exchange rate

166

The moment in the Brazilian economy is of unprecedented intensity of events. The harmful external environment due to COVID-19, the internal environment of conflict between the government and Congress/Supreme Court, besides the political game with governors. The institutional conflict plus the internal and external economic variables stand out to price the Exchange rate, and now a new ministerial crisis in one of the government’s pillars shakes the most optimistic expectations.

The Market now has three important points, that is, liquidity and domestic demand scenario, the production profile of the 2020 second season, and the export business flow. The moment of social paralysis in Brazil has the same effect as in other affected countries. Containment of internal demand in all segments and liquidity difficulties for companies and the general system.

Despite the government’s actions to overcome this issue of credit and employment, the prolonged paralysis of economic activities leaves negative tracks, from unemployment to the liquidity of companies. This affects prices. We have registered a decline in prices in the meat sector in general, with the increase in cold store stocks and difficulties in wholesale and retail. At this moment, the units that stand up are those with a better export mix and production flow capacity. However, export

alone is not enough to sustain all national production.