The Brazilian corn market set the highest record production and the highest prices in 2020. In the first two months of 2020, the lower corn stocks and the lean first harvest set corn prices to increase. According to data from Cepea, from March to June, the expectations for record production in the second crop and the advance of the covid-19 pandemic in Brazil rose domestic prices. With the measures to control the pandemic, agents feared a reduction in demand from national exporters and consumers. However, exports have increased, as well as the resumption of sales in the domestic market from April to December. The climate favored Brazilian corn production to set a record in the second 2020 harvest. The strong appreciation of US dollar, the rising international prices and the strong external demand have also supported exports parity and the prices in the domestic market, starting in July. In October, prices reached record levels. In December, the weakening of the US dollar pressured prices in port regions and rural areas.
Source: Agrolink
*Translated by Ia Niani