Corn price responds to the moment of most demand and rises this Monday on B3

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On Monday (13) the corn futures prices come to an end, sustaining positive movements on the Brazilian Stock Exchange (B3).

September/21 was worth R$ 93.19 with an increase of 1.13%, November/21 was worth R$ 93.34 with an increase of 0.90%, January/22 was traded for R$ 94.55 with an increase of 1.01% and March/22 had a value of R$ 94.40 with a gain of 0.49%.

For the market analyst at Brandalizze Consulting, Vlamir Brandalizze, this small movement registered by B3 reflects the need to return to the demand for corn, probably by the egg sector in the interior of São Paulo.

“The sector supplies itself in September and October to work the rest of the year. In the next few days we will have more demand for corn by small consumers, but there is no upward trend in corn because the planting of the summer crop continues at full speed in the South”, he says.

Brandalizze also points out that we should have a 10% increase in the areas cultivated with corn in this first harvest and, with favorable weather conditions, result in a production much higher than that reached in 2021, with harvest already in the first days of January.

In the first seven working days of September, Brazil exported 1,259,798.1 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).

This volume represents an increase of 724,964.8 tons in relation to the accumulated in the previous week (534,833.3) and is already 28.96% of the total reached during the month of August 2021 (4,349,451.2). On the other hand, it is only 19.77% of the 6,371,263.4 tons that were exported throughout the month of September 2020.

In the accumulated from September 2021 to date, the country has already surpassed by 27.99% the equivalent to all registered in September 2020 (147,332 tons). Thus, the daily average of imports was 26,938.7 tons against 7,015.8 in the same month last year, an increase of 283.97%.

In the Brazilian physical market, corn sack prices had more setbacks than advances on this first day of the week. The survey carried out by the Notícias Agrícolas team identified valuations only in Campinas/SP.

On the other hand, devaluations appeared in the squares of Não-Me-Toque/RS, Cascavel/PR, Jataí/GO, Rio Verde/GO, Brasília/DF and São Gabriel do Oeste/MS.

Check out how all the quotes were on this Monday

According to a daily report by Radar Investimentos, “the physical corn market has been more restricted during the last few days. The consumer end is cautious and avoids making relevant volumes in the purchase”.

The analysis by Agrifatto Consultoria adds that, “cereal prices in Campinas/SP remain at R$ 92.00/sc after a tense week that left buyers and sellers more distant from business.”

Also on Monday, Cepea released its weekly note pointing out that liquidity remains low in the corn spot market.

“Last week, in addition to the national and international holidays, the lower pace of business was linked to the restriction of buyers, who expect further devaluations in the coming weeks.”

In this scenario, as indicated by data from Cepea, corn prices continue to fall, but this movement ends up being limited by concerns about supply. “Producers continue to report considerable drops in productivity, which has been confirmed by official data.”

In the September partial (from August 31 to September 10), the ESALQ/BM&FBovespa Indicator (Campinas – SP) dropped 1.3%, closing at R$ 93.53/60 kg bag on Friday, 10.

External market

On the Chicago Board of Trade (CBOT), international corn futures prices also maintained their trajectory throughout the day, ending Monday’s activities by accounting for setbacks.

The maturity September/21 was quoted at US$ 4.96 with a devaluation of 6.00 points, the December/21 was worth US$ 5.13 with a loss of 4.25 points, the March/22 was traded for US$ 5. 22 with a fall of 4.50 points and the May/22 had a value of US$ 5.27 with a fall of 4.25 points.

These indices represented devaluations, in relation to the closing of last Friday (10), of 1.20% for September/21, of 0.77% for December/21, of 0.76% for March/22 and 0.75% for May/22.

According to information from the Reuters Agency, corn futures came under pressure from the approaching harvest in the United States.

“The corn and soybeans will turn as we move towards harvesting,” said Tom Fritz, commodities broker for the EFG Group.

The publication also points out that the USDA (United States Department of Agriculture) on Friday increased its forecast of the US corn crop by 1.7%, after farmers dedicated more hectares to the grain.