Brazil: Producer ended up making a wrong move that caused the price of corn to fall

Published 2023년 3월 27일

Tridge summary

A producer's decision to hold soybeans and sell corn has led to a drop in corn prices in Rio Grande do Sul and Santa Catarina, while the market in Paraná remains quiet. Industries in the region have already stocked up on local corn offerings for the next few months, leading to a surplus and lower price indications. As a result, price indications have fallen sharply, with some transactions receivable only in the second half of April. Meanwhile, soybean prices are not expected to rise, and the market is quiet in Paraná due to a lack of export competition and supply.

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

Original content

According to TF Agroeconomia, the producer from Rio Grande do Sul ended up making a wrong move that caused the price of corn to fall. That's because, instead of selling soybeans before it drops further, the producer chose to hold the oilseed and sell the corn. “The seasonality (post-harvest) of the summer crop continues to push corn prices backwards. Low soybeans made producers hold soybeans and sell more corn, pushing prices down this week. But, according to our analysis, soybean prices have no chance of rising and corn prices do”, he comments. “In RS, industries entered January well bought, and covered February, March and April with the local offer. In this way, at the moment, they only look at opportunities, and allow themselves the luxury of showing prices to sellers far below their wishes. Price indications this Friday fell sharply, with spaces for receipt only in the second half of April. Indústria indicated R$ 81.00 for Santa Rosa, R$ 84.00 for Frederico Westphalen and Três ...

Source: Agrolink