Coamo’s management will suggest to its board of directors an investment of BRL 250 million over the next two years to improve grain storage capacity due to a lack of silos. Coamo’s static capacity would increase by 400,000 tons as a result of the improvement, which would also help the cooperative deal with a shortage caused by a large harvest and weak producer sales in the 2022–2023 season. This year, Brazil harvested more grain from the summer crop than it could store. Brazil’s storage shortage could be made worse by the second corn harvest, which might put pressure on port export premiums and, consequently, grain prices.
Sources: Reuters/Noticias Agricolas (*Translated by Ia Niani)