Brazil’s corn sale is delayed due to low prices and logistics

By Carmen Luisa Ugueto Liendo

According to the Infobae portal, corn in Brazil is delayed due to low prices and logistics.

The anticipated marketing of Brazil’s second corn crop for the current season reached 24.3% of the expected production of 92.199 million tonnes, according to a survey by Safras & Mercado, indicating delays in the “safrinha” (off-season crop) versus the historical average for the period.

In May last year, sales were more advanced, with 31% of the expected production of 84.404 million tonnes of corn.

The average sales for the period over the past five years is 32.6%, according to the consultant’s data.

Lower prices and weather-related uncertainty have weighed on farmer confidence, said Safras, who cited the risk of frost affecting part of the fields in some states.

However, weather forecasts do not indicate it.

MAIZE IN BRAZIL IS DELAYED DUE TO LOW PRICES AND LOGISTICS

The second planting of corn, which takes place after soybean harvesting, was delayed more than normal this year due to delays in the oilseed harvest.

Paulo Molinari, an analyst at Safras, cited logistical bottlenecks at ports and lack of storage space as factors affecting sales of Brazil’s second corn crop, which accounts for 70% to 75% of domestic production in a given year.

“Prices fell a lot, and farmers are still waiting for something to improve this situation,” Molinari told Reuters.

“In Paraná, Mato Grosso do Sul, and São Paulo, the risk of frost continues to cause farmers to postpone forward sales of their second corn crop,” he added.

Corn prices have been pressured by expectations of a record crop in Brazil, among other factors, and have deepened their decline in April.

A storage deficit in Brazil, exacerbated by slow sales of the country’s record soybean crop, has also exacerbated the silo shortage problem, Molinari noted.

“There is no room to accelerate corn sales in May,” said Molinari, who added that Brazil’s port logistics problems will not improve until September after most of the Brazilian soybean crop has been shipped.

With information from América Retail