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Photo: Minas Gerais Government
The price of corn fell in the domestic market due to uncertainties regarding demand and a higher supply from the seller. Scot Consultoria affirms that, for now, the positive scenario regarding the production in the second harvest collaborates with the weaker market.
In the Campinas region (SP), the 60 kg bag was quoted at R $ 58 at the close on Thursday 9, without shipping, after reaching R $ 62 at the beginning of the month.
In the short and medium term, uncertainties regarding the economy (due to the coronavirus), reflections on the demand for protein and, consequently, the inputs used in production (corn flour and soybean) should maintain the bias towards drop in prices
“However, it is important to highlight that the supply of corn at this time is not abundant in the country and, if the pandemic does not affect the demand for the cereal, there is room for prices to be restored until the second harvest is strengthened, at from June “, reflects on the company.
The low internal availability at that time is a factor that should limit the decreases in prices in the physical market, the levels of which are expected to remain above those registered in the same period last year.
For example, the corn futures contract maturing in May 2020 in B3 was traded near R $ 47 per bag in Campinas (SP) last week. In May 2019, the average price of cereal was R $ 35.95 per bag in the physical market.
Attention should also focus on the weather, with frost possibilities in the south, the dollar and demand in the coming weeks.
