Corn price has already risen 60% in one year and may have higher

On Thursday, April 2, the cereal price in Campinas (SP) reached 61.50 brazilian reais, the highest value in history. Despite the lower movement in recent weeks, due to the coronavirus pandemic, those who needed to buy corn came across less intention on the selling side and higher price orders for the cereal. The rising dollar, climatic uncertainties, with the second corn crop in the development phase, and expectations of lower stocks this season continue to support cereal prices in the domestic market. On the demand side, domestic consumption was little affected, since livestock production did not stop amid the current situation. According to a survey by Scot Consultoria, in the region of Campinas (SP), the 60 kg bag was quoted at R$ 61.50 this Thursday 2, without freight, a 9.5% increase in relation to the average last month. In comparison with April last year, the price of corn rose 60.3% this year. The current price is a record, in nominal values. The company’s expectation is for a firm market in the short and medium terms and price increases are not ruled out until we have a better idea of the volume to be harvested in the second harvest, which is the main harvest and whose harvest starts in June in the main regions producers in the country. That is, until mid-May, beginning of June, if there is no change on the demand and exchange side, the bias is high in the corn market.

Source: Canal Rural