Demand for ethanol and stock retention drive up corn prices in Brazil and the USA

The price of corn increased in Brazil and the United States during the last week of October, driven by demand for ethanol, delays in the American harvest, and stock retention in Mato Grosso. According to information from the IMEA bulletin, between October 20 and 24, the current contract of the CME Group rose by 1.70%, with a weekly average of US$ 4.24 per bushel. The main factor was the increase in American demand for ethanol production, in addition to heated exports. Another relevant aspect was the delay in the harvest in the USA, caused by heavy rains in the corn belt region. The lower immediate supply increased pressure on prices, at a strategic moment for the supply of the global market. In Brazil, corn also appreciated. In Mato Grosso, the main producing state, the average quotation reached R$ 46.29 per sack, an increase of 0.81% in the week. The rise is attributed to the strategy of producers to retain stocks in expectation of more attractive prices in the short and medium ...