Demand for ethanol drives up corn prices

According to the weekly analysis of the Mato Grosso Institute of Agricultural Economics (Imea), released on Monday (27), the price of corn in the current CME Group contract registered an increase of 1.70% between October 20 and 24, ending the average at US$ 4.24 per bushel. According to the institute, the appreciation was driven by the increase in domestic demand from the United States for ethanol production, coupled with the strengthening of demand in the external market. Imea also highlighted that the delay in the harvest of U.S. corn, caused by the high volume of rainfall in the corn belt region, reduced the immediate supply of the grain and contributed to the support of prices in the international market. In Mato Grosso, the price of corn also showed an appreciation of 0.81% in the last week, closing the average at R$ 46.29 per sack. The institute reported that the movement was the ...