Corn prices continue to fall in the Brazilian market, returning to the levels observed in October 2023.
According to Cepea, the reduction in prices is influenced by buyers’ caution, progress in the summer harvest and the positive development of the second harvest in several regions.
In some locations monitored by Cepea, current prices are the lowest since October last year.
Consumers, with sufficient stocks, are limiting their purchases to what is necessary. On the sellers’ side, there is a division: some are more willing to negotiate for immediate liquidity, while others prefer to stay away from the market, waiting for a possible recovery in prices in the coming months.
This optimism is partly based on the recent appreciation of the dollar, which could increase export parity, and the forecast of a potentially smaller second harvest.
Conab projects an 8% reduction in the cultivated area and a production of 85.61 million tons, which represents a 16% drop compared to the 2023/24 season.
