Corn Market: Limited Supply Drives Up Prices in Brazil

Corn sales prices remain high in the Brazilian domestic market.

The corn market in Brazil continues at a slow pace, with business stalled due to limited supply. The soybean harvest, which frees up space for corn, is still ongoing, which restricts the availability of the cereal. In addition, the increase in freight costs for long distances makes commercialization difficult, even with consumer demand on the rise.

International Scenario:

• The Chicago Stock Exchange recorded oscillations in corn prices, influenced by the balanced demand from the United States and the forecast of a reduction in global stocks for the 2024/25 season.

Internal Prices:

• The average price of a 60 kg bag of corn in Brazil reached US$ 14.48 on March 13, an increase of 4.66% compared to the previous week.

• Regional variations:

  • Paraná: Cascavel (US$ 13.97/bag, +1.25%).

  • São Paulo: Campinas (US$ 16.38/bag, +2.15%).

  • Mato Grosso: Rondonópolis (US$ 14.31/bag, +16.9%).

  • Rio Grande do Sul: Erechim (US$ 13.28/bag, +1.32%).

  • Minas Gerais: Uberlândia (US$ 14.66/bag, +4.94%)

  • Goiás: Rio Verde, (US$ 14.66/bag, +10.39%).

Exports:

• Brazilian corn exports totaled US$ 105.730 million in the first three working days of March, with a daily average of US$ 35.243 million.

• The volume exported was 446,940 thousand tons, with a daily average of 148,980 thousand tons.

• The average price per ton was US$ 236.60 (FOB).

• Compared to March 2024, there was a significant increase in exports, with a growth of 598.7% in the average daily value and 597.3% in the average daily quantity.

Additional information about the corn market in Brazil:

• The second corn harvest, known as "off-season corn", is the main source of cereal production in the country, and its harvest will take place in the coming months. Climatic conditions and crop development will be decisive for future supply.

• The corn market in Brazil is influenced by several factors, including:

  • Internal demand for animal feed and ethanol production.

  • External demand, especially from China, one of the main importers of Brazilian corn.

  • The type of exchange rate that affects the competitiveness of exports.

  • Production costs, which include inputs, fertilizers and fuels.

Do you want to know more about the Brazilian corn market? Please contact the RGA team to obtain further clarification and information.