Brazil’s corn supply is limited and prices remain steady amid dry weather – CEPEA
RIO DE JANEIRO, BRAZIL – Rainfall was registered in some corn producing regions in Brazil at the close of the first half of May this year. However, rainfall was still insufficient to address concerns over water deficit, particularly in Paraná, Mato Grosso do Sul, and some areas of the Southeast.
Therefore, sellers consulted by CEPEA (Center for Advanced Studies on Applied Economics) have remained vigilant to the impacts of weather on productivity and, therefore, limiting the supply of new lots at the spot.
Many buyers with the need to replenish short-term stocks, in turn, have ultimately yielded to higher prices. With this scenario, corn prices have remained high in most regions monitored by CEPEA.
A report released last week by CONAB (National Supply Company) indicates that the average national productivity may drop 3.3% in this harvest compared to the preceding one. The result is mainly linked to negative readjustments in yields in the Southeast and South, 3% and 4.9%, respectively.
Agents consulted by CEPEA also expect further productivity declines in the next CONAB reports, based on unfavorable weather.
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