Corn inventories are high and the production expectation of the second Brazilian crop is about 66.5 million tons, according to the 6th Grain Survey of Conab. According to market analyst from Conab, Thomé Guth, in addition to Brazil, the expectation is a good supply of corn from Argentina and Ukraine. “Grain consumption is higher than supply but stored volume is high,” he says. Given this scenario, the analyst explains, prices on the Chicago Stock Exchange are under pressure. Guth points out that the trade war between China and the United States, in addition to North American planting conditions, must also impact the Brazilian market. “In the US, the estimate is for an increase in corn planted area,” says the analyst, who warns: “If this situation continues, the trend is for lower corn prices in the 2nd. half”.
Source: Universo Agro