The Bolsa Brasileira (B3) ends its activities this Monday (23) with corn futures prices losing strength in the final stretch of the day and closing slightly lower after operating throughout the trading session with slight gains.
The maturity September/21 was quoted at R$ 95.25 with a devaluation of 0.76%, the November/21 was worth R$ 95.92 with a decrease of 0.60%, the January/22 was traded at R$ 97, 41 with a 0.55% loss and March/22 had a value of R$ 97.49 with a drop of 0.62%.
For the market analyst at Brandalizze Consulting, Vlamir Brandalizze, B3 has small moves and technical moves because the market sees this as a week of harvest rush with rain forecasts for the weekend and producers wanting to take the grain of the field before possible damage from precipitation.
“The week starts with more offers and buyers taking it from hand to mouth. But working very adjusted in here, little corn and very strong demand”, he points out.
In the third week of August, Brazil exported 813,624.7 tons of unground corn (except sweet corn), according to the report released by the Ministry of Industry, Foreign Trade and Services, through the Foreign Trade Secretariat (Secex). Now, in the accumulated result for the month, the country shipped 2,946,812.5 tonnes in the first 15 working days of the month.
This volume represents an increase of 48.5% of the total reached during the month of July 2021 (1,983,371). On the other hand, it follows behind the 6,243,786,6 tonnes that were exported throughout the month of August 2020, 52.8% less.
At the same time, Brazil has already imported 82,473.3 tonnes of unground corn, except for sweet corn. Only in these first 15 days of August 2021, the country has already surpassed by 18.4% the total registered in August 2020 (69,620 tons). Thus, the daily average of imports was 5,498.2 tons against 3,315.2 in the same month last year, an increase of 65.85%.
In the Brazilian physical market, corn prices dropped in several places surveyed by the Notícias Agrícolas team on this first day of the week. Devaluations appeared in Ponta Grossa/PR, Ubiratã/PR, Londrina/PR, Marechal Cândido Rondon/PR, Pato Branco/PR, Palma Sola/SC, Itiquira/MT, Brasília/DF, São Gabriel do Oeste/MS, Eldorado/ MS, Amambai/MS, Luís Eduardo Magalhães/BA and Cândido Mota/SP.
Check out how all the quotes were on this Monday
According to a daily report by Radar Investimentos, “the quotations in the physical market have gradually yielded, even without large volumes traded. This movement can be explained by the behavior of buyers, with farms and industries cautious in building stocks and the government signaling a possible reduction in import tariffs”.
The analysis by Agrifatto Consultoria adds that the physical corn market is “stable with a bag negotiated at the levels of R$ 99.00/sc in Campinas/SP, with few offers at high levels and the buyer needing to pay prices to guarantee their prices. stocks”.
Also on Monday, Cepea released its weekly note pointing out that, “corn buyers are still away from the national spot market, expecting better opportunities in the coming weeks.”
According to Cepea collaborators, these agents are based on the advance of the harvest and on the maturity of the costing debts at the end of August and September, which may lead sellers to accept to negotiate new lots at lower prices, in order to “make cash”. “For the time being, most producers also remain withdrawn from the market.”
As a result, trading is sluggish on the spot market, and prices are falling. Between August 13 and 20, the ESALQ/BM&FBovespa Indicator (Campinas-SP) fell 1.08%, closing at R$ 98.79/60 kg bag on Friday, 20
The Chicago Board of Trade (CBOT) even started Monday outlining highs, but it lost momentum and ended the first day of the week dropping to international corn futures prices.
The maturity September/21 was quoted at US$ 5.38 with a loss of 0.75 points, the December/21 was worth US$ 5.35 with a devaluation of 1.50 points, the March/22 was traded at US$ 5. 43 with a low of 1.25 points and the May/22 had a value of US$ 5.48 with a drop of 1.25 points.
These indices represent losses, compared to the closing of last Friday (20), of 0.37% for December/22, 0.18% for March/22 and 0.18% for May/22 , in addition to stability for September/21.
According to Reuters, corn has gone from stable to weaker, limited by forecasts of a large crop in the United States and concerns about demand from biofuel producers, following news last week that the Environmental Protection Agency would recommend the reduction of federal biofuel blend mandates.
Karl Plume of Reuters Chicago reports that grain futures fell sharply last week as concerns about global economic growth and rising coronavirus infections put pressure on broader markets. Crude oil and metals prices rose on Monday after bargain hunting drove equity markets higher in Asia and Europe.
“Macros are taking the foot out of the throat of commodities today, except corn. Marketers are still very nervous about biofuel RINs and what kind of exclusions will be given to refiners,” said Mike Zuzolo, president of Global Commodity Analytics.