O Brazilian corn market recorded a drop in prices throughout April. According to Safras Consultingthe month began with some stress on prices, due to exchange rate volatility and speculation about the weather.
However, the return of rain in the safrinha producing areas, which faced drought, contributed to an increase in supply by producers, or helped to bring down cereal prices.
On the buyers’ side, consumer interest in the cereal is limited, due to the expectation of a favorable harvest season. As for exports, Brazil’s participation remains quite limited, amid strong competition in the international market with other countries, such as Argentina.
On the international scene, the outlook in Chicago remains negative throughout April, due to the expectation of favorable weather for both planting and the initial development of corn crops in the United States.
According to Safras Consultoria, for the month of May, the tendency is for prices to remain under pressure in the international market.
Pricing
The average value of a bag of corn in Brazil was quoted at R$55.26 on April 30, a drop of 2.92% compared to the R$56.92 recorded at the end of March. In the market available to producers, the price of corn in Cascavel, Paraná, remained at R$59.00. In Campinas/CIF, the price dropped 3.17%, from R$63.00 to R$61.00.
In Rondonópolis, Mato Grosso, the price of a bag fell 2.33%, from R$43.00 to R$42.00. In Erechim, Rio Grande do Sul, the price increased by 12.28%, from R$57.00 to R$64.00 on sale.
In Uberlândia, Minas Gerais, the selling price fell 5.36%, from R$56.00 to R$53.00 per bag. And in Rio Verde, Goiás, the price fell 16.07%, from R$56.00 to R$47.00 on sale.
Exports
Brazilian corn exports generated US$ 21.948 million in April (20 working days), with a daily average of US$ 1.092 million. The total amount of corn exported by the country was 62,840 thousand tons, with an average of 3,142 thousand tons per day. The average price per ton was US$347.70.
Compared to April 2023, there was an 86.6% drop in the average daily value of exports, an 88% drop in the average daily quantity exported and an 11.7% increase in the average price.
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