Brazil: Domestic market of corn loses strength due to growers’ selling interest

Published 2023년 3월 24일

Tridge summary

The article provides an overview of the current status of Brazil's second crop corn planting, highlighting that it is slightly behind schedule but under favorable conditions. Despite some delays, particularly in northern Paraná and Mato Grosso do Sul due to heavy rainfall, the market does not foresee a critical situation and anticipates a potential increase in planted area in Mato Grosso and Matopiba. The market is presently supply-focused, with above-average yields supporting short-term supply and prices for the 2023 second crop remaining low. Growers are strategically selling corn to make room for soybeans, and the strategy of supplying and dropping prices is expected to hold until August, provided growers continue selling corn and retaining soybeans. Factors such as the US planting intention, Argentine government figures in April, and Brazilian exchange rate fluctuations due to interest rate decisions are key to monitoring in the coming days.

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

Original content

The corn planting of the Brazilian second crop is lagging behind the ideal, however, it is not the first time and will not be the last that Brazil plants an important portion of its main crop in March. The fact is that planting conditions are still very favorable and there is no symptom of a critical situation so far or significant cut in the area. On the contrary, we are evaluating Mato Grosso and Matopiba with a possible higher-than-expected increase in planted area. The issue now is really the grower’s position about retention during the next few weeks, and it seems they will continue selling corn to keep space open for soybeans. 2023 second-crop corn continues with very discreet prices and may still be under pressure in case of a normal US crop. The summer harvest continues. Now, it advances in the south and southwest of Paraná and the northern plains of Santa Catarina. It is also advancing in São Paulo and southern Minas Gerais. Goiás and Mato Grosso do Sul have crops ...

Source: UkrAgroConsult