Brazil: 2024 second-crop trading of corn gains momentum in the Midwest

Published 2024년 4월 11일

Tridge summary

The Brazilian domestic corn market is currently adjusting to a preference for 'second crop' corn, influenced by initial price alignments that are encouraging business activity and setting the stage for resumed exports in the near future. Favorable weather in Mato Grosso and Goiás is helping producers accelerate sales, although Paraná and Mato Grosso do Sul are facing potential production setbacks due to adverse weather. Despite these challenges, the internal market is adapting, with port levels showing slight improvements in April. However, high premiums on Brazilian corn compared to US corn are hindering export growth. The trading of second-crop corn is picking up, especially in Mato Grosso and Goiás, and a large sorghum crop is affecting regional supply dynamics. The situation could see further improvement with the return of rain in drought-affected areas, but the domestic market is already shifting supply chains to meet current demand.

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

Original content

The domestic corn market is starting to adopt a “second crop” bias from this week onward. The initial price alignment, already focusing on the initial harvest in May in Mato Grosso, particularly, favors a better movement of business, allowing exporters to resume shipments in the coming few months. The excellent climate in Mato Grosso and Goiás helps producers in deciding whether to speed up sales. On the other hand, there is a completely different situation with Paraná and Mato Grosso do Sul, states that are on the verge of production losses with the second crop due to the little rain registered in March and high temperatures. The internal market begins to work with these two very different situations. Port levels have improved a little in April, with the stabilization of external prices, slightly better premiums, and an exchange rate above BRL 5.00/dollar. Premiums in Brazil are still high compared to US corn. So, it is difficult to gain strength in exports without improving ...

Source: UkrAgroConsult