Prices of corn remain high only for internal factors

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    Porto Alegre, August 11, 2020 – Markets seem to keep ignoring the negative economic data from the second half of the year and persist in maintaining the optimistic tone for the coming few months. The symptoms are found on stock exchanges, which are unable to find a more permanent negative bias that reflects the real economy.

    The emergence of more advanced COVID-19 outbreaks in Europe and the resistance to reverse the situation in the United States keep markets concerned over a potential recovery of the economy in this second half of the year. Amid the turmoil of the pandemic, the United States is increasing the pressure on China at a time of local electoral trajectory and facing the difficulty in reaching the first phase of the trade agreement until the end of the year.

     Meanwhile, the Brazilian corn market detaches itself from the external environment, forcing trading companies to raise premiums, and creating a more intense dispute for the product available between consumers and exporters. Greater retention on the part of growers will generate this price jump in the middle of the Brazilian harvest of the second season.

     Agência SAFRAS Latam

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