Brazilian domestic market tries to hold back corn prices

Published 2024년 12월 5일

Tridge summary

The article examines the effects of currency devaluation and monetary policy on Brazil's agricultural market, focusing on corn. While devaluation boosts export competitiveness, it also impacts domestic prices and supply. An upcoming interest rate hike could affect the exchange rate and public debt. Despite rising agricultural prices, increased costs offset exchange rate benefits. Improved selling interest stabilized corn prices in some areas, though supply shortages persist elsewhere. Large consumers and exporters are securing stocks for December and January, with corn exports expected to continue. The potential for additional shipments of 5 million tons is noted, alongside bearish influences on future prices, particularly for cattle and corn. The summer corn crop is performing well, with the harvest in Rio Grande do Sul starting in January, and new crop prices are stable at BRL 70 in Missões. UkrAgroConsult's AgriSupp platform is also mentioned for market intelligence.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The escalation of the currency devaluation in Brazil always generates price movement at ports. Exports are becoming more competitive, exporters are acting more aggressively in their purchases, and the domestic market is seeking to compete for volumes amid the exchange rate movement. On the 11th, the Monetary Policy Committee (Copom) meeting may provide more room for some currency adjustment, with a new high in the Selic rate. Until then, the market will have to live with this financial variable influencing domestic prices. At the end of November, there was some supply and, as with fattened cattle, the market tried to influence the B3 (the Brazilian futures exchange) by stimulating producers to sell corn. However, the exchange rate ended up once again holding back sales more intensely. In any case, we are at a time when producers also need to sell part of their stocks and free up warehouses for the new crop. On the 11th, the last meeting of Copom this year and of the current ...

Source: UkrAgroConsult