Corn continued its trajectory of low prices on the Chicago Stock Exchange. The indication that the United States will reduce the planted area had limited impacts on prices. This Monday (1/4), corn shares for May closed down 1.47%, at US$ 4.3550 a bushel.
Last Thursday (28/3), the US Department of Agriculture (USDA) indicated that the area planted with corn on American soils is expected to be 5% smaller in 2024/25, with 36.42 million hectares. The scenario, which should have been seen as an upward factor for prices, turned into optimistic projections for supply in the country, according to Ênio Fernandes, an analyst at Terra Agronegócio.
“Within the USDA’s initial estimates, Americans will be able to harvest around 370 million tons, with a stockpile of 50 million tons. After recent losses, we are in a time of inventory rebuilding, and larger inventories form a price in the market.”he states.
In the 2023/24 harvest, the American agency’s projections indicate a harvest in the country of 389.69 million tons, with final stocks expected at 55.17 million.
Fernandes remembers, however, that the projections, and consequently the price trend, are conditioned on ideal climate behavior on American soil.
“From now on, ‘Mother Nature’ is the one who will define where prices will go. With the first rains recorded, everything indicates that planting should begin on April 20th in the main producing areas of the USA. If this start of planting happens without any unforeseen circumstances, it reduces the possibility of soybeans taking up even more space that would be allocated to corn”, he adds.
The price of wheat fell again on the American stock exchange, after rising by more than 2% in the last session. Contracts for May closed down 0.58%, quoted at US$5.57 a bushel.
The favorable outlook for Russian wheat exports once again dominated the attention of investors on the stock exchange, as did the maintenance of weak demand for US cereal.
Tags: Reduction corn area prevent price declines Chicago Quotes
