Corn surplus pressures prices

The corn market in Brazil continues to be pressured by domestic supply, a direct reflection of the loss of competitiveness of exports of the raw grain in the face of the American product. According to TF Agroeconômica, the United States has been offering extremely low prices to clear its bumper crop, which reduces the space for Brazilian corn in the international market and leaves grains in the domestic market, pressuring prices. According to calculations by DERAL, current losses reach -29.3% in Paraná, -6.19% in Santa Catarina, -19.78% in Rio Grande do Sul, and -38.82% in Mato Grosso. Nevertheless, TF Agroeconômica points to a slight reaction in recent weeks, with a 1.63% increase on B3, equivalent to R$ 1.08 per sack, and suggests that producers buy futures contracts on the exchange as a strategy to reduce losses. Among the factors driving prices up, the positive performance of the U.S. ethanol industry stands out, whose production has grown to 1.112 million barrels per day, ...