Porto Alegre, September 14, 2020 – The escalation of sales in early September seems to have been faster than expected. A concentrated pressure of commitments by growers and a sudden supply, which seems to have found a fast placement in the domestic demand and exports. This conclusion comes at the moment when this short second week of September showed a resumption of tight offers and even high prices. Surprisingly, Mato Grosso did not register any reflection from the other states due to the profile of its local commercialization, showing that producers remain inclined not to sell corn at lower prices. The issue now remains the weather, which, as we have pointed out, confirms the arrival of La Nina and climatic variables that can bring significant volatilities to domestic and foreign prices.
Considerations on the Brazilian domestic market reveal that the combination of strong domestic demand added to good exports continues to keep a high demand for corn. It must be noted that the housing of breeding chicks was record in July and must confirm another record in August, and the prices of breeding chicks reached record levels last week, that is, there must be more housing ahead. Pig prices are at their highs, pointing out there is no decline in the demand of the sector. Fattened cattle with record and ever-rising prices are a variable that motivates cattle confinement, maintaining the demand for corn and other feedstuff ingredients.
Corn exports hit 6.8 million tons in August, with the schedule for September reaching 6.1 million tons. In the accumulated result for the year, between shipped and to be shipped corn, Brazil has 19.5 million tons destined for exports. The target continues at 34.3 million tons, leaving around 15 million tons to reach the 2020 target. This volume will likely be reached until January.
Agência SAFRAS Latam
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