The rise in corn prices may be illusory, says consultancy

The corn market continues on an upward trajectory, but TF Agroeconômica warns that the graphical appreciation may be illusory if the producer does not compare the offered prices with their own production costs. According to the consultancy, those who use only the variable cost work with R$ 39.96 per sack and achieve a profit close to 32.63%. However, those who adopt the total cost calculated by Deral of Paraná, of R$ 73.55 per sack, see a loss of about 27.94%. According to TF, each producer should consider the criterion that best represents their reality. The trend pointed out by the consultancy is for the rise to continue for another month, until December, when the first harvest in Brazil begins. Traditionally intended for internal consumption, this production tends to limit the momentum of quotations. Therefore, the recommendation is to sell the remaining lots in the next 20 days, before the market starts its return movement. Among the supporting factors, the strong pace of U.S. ...