Last week, Brazil’s corn prices rose significantly in major markets, influenced by 2024’s early rain pattern changes, as observed by Safras Consultancy.
The South saw less rain, while the Central-North regions experienced improved conditions.
This change affected crops differently: soybeans in Mato Grosso and Goiás received late rains, but it was timely for the 2024 second corn crop.
Early soybean harvests and better soil moisture are now influencing decisions for the second corn crop planting.
Despite an unavoidable reduction in the planted area, these factors are key. Consistent rain in January, February, and the first half of the year is vital for a successful crop.
Meanwhile, the Brazilian corn market maintains strong prices. This strength comes from regional shortages, fast-paced exports, and domestic consumers’ lack of stockpiling.
The consultancy focuses on the upcoming harvest, starting in Rio Grande do Sul and expanding to the Southeast and Paraná in February.
This surge in prices, due to producers’ withholding and consumer stock shortfalls, is expected to stabilize with the arrival of the 2024 second corn crop.
Climate conditions will continue to play a crucial role in marketing and production expectations until then.
Regarding domestic corn prices
- Brazil’s average corn sack price recently hit R$ 70, a 3.7% increase from the previous week.
- Cascavel, Paraná, saw a 6.5% price rise, moving from R$ 61 to R$ 65.
- Prices in Campinas/CIF went up by 8.1%, from R$ 74 to R$ 80.
- In the Mogiana region, São Paulo, prices held steady at R$ 75.
- Rondonópolis, Mato Grosso, maintained its R$ 55 rate.
- Erechim, Rio Grande do Sul, experienced a 6.1% increase, reaching R$ 70.
- Uberlândia, Minas Gerais, observed a 5.6% rise to R$ 76 per sack.
- Rio Verde, Goiás, noted a 1.6% weekly increase, with prices going from R$ 64 to R$ 65.
On the export front
Brazil’s corn exports generated US$ 326 million in revenue this January, averaging US$ 81.656 million daily.
The country exported 1.333 million tons at an average of US$ 245.00 per ton.
Compared to last January, there was a slight increase in the daily export value and a considerable rise in the daily exported quantity, despite a drop in the average price.