Foreign market of corn has U.S. harvest from September

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     Porto Alegre, September 1, 2020 – The international market continues with the discourse that China’s corn purchases will be voluminous in the second half of the year. What has been real so far is that the Chinese crop begins to be reaped in September, and the government continues to hold its internal auctions. On the other hand, it makes purchases in the United States, helping fulfill the commercial agreement, and serving the south of China where demand is more significant. Also in September, the U.S. crop begins to be reaped, and there will be a downward correction in the local production due to the storm in Iowa. Basically, this is what we have for the month of September since corn is in maturation stage.

     The global corn market is in a surprising situation. Ukraine raised prices to USD 165/ton FOB, against USD 152 in early August, and it is at full harvest. Argentina put prices at USD 172/ton FOB, compared to USD 160 in early August, and presents record shipments this year. Brazil without offers for new business or with very high prices above USD 180 FOB. The surprise is in prices with satisfactory harvests in the main growing countries and price highs.

     Agência SAFRAS Latam

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