With the purchase of 500 000 tons of corn, the Brazilian government will keep up its plan of buying agricultural products to expand public stocks. Conab stated that it will utilize the Federal Government Acquisitions mechanism (AGF) to purchase corn in this initial operation, even with corn prices below the government’s minimum price due to Brazil’s record-breaking crop yield. Quotes for 60 kg bags in Mato Grosso, Brazil’s largest producer, range between BRL 33.00 and 37.00, less than the state’s minimum price established by the federal government of 43.26 reais per bag. Legally, the producer’s minimal price must be guaranteed by the government.
Source: Reuters (*Translated by Ia Niani)