Federico Morixe: South America is getting ready to have spectacular harvests
Maize (Corn)
Uruguay
Published May 20, 2023
Tridge summary
The international grain market analyst, Federico Morixe, explained that the latest USDA report leaves good expectations for planting in the northern hemisphere (South America) where corn, soybeans and other summer crops are currently being planted, "there are a great planting intention for the prices we had during the past year”, he pointed out.
Original content
Faced with this scenario, Morixe maintained that many producers were already setting prices, others making price insurance and some selling in advance, asserting that they have a very good intention to plant, "even more so knowing that fertilizers and other agrochemicals have lowered their prices." therefore, "the cost of production has gone down and the margin is interesting", which gives a very good expectation of production as long as the weather is normal. “If the weather starts to be more favourable, it will have a negative impact on prices, and if the weather affects these crops and lowers yields, prices should start to rise because it would lead to expectations of lower yields and less production. In other words, the law of supply and demand begins to balance, if there is less supply, prices will go up, if there is more supply, prices will go down," the expert told Valor Agro. On this point, the analyst highlighted that, removing the droughts that Argentina and Uruguay are ...
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