corn falls in the face of a weakened physical market

The prices on the corn futures market in São Paulo hold the drop in the prices of the physical corn market this Wednesday at B3, according to information released by TF Agroeconomic. “Most of the squares in the country today saw a practically frozen day of business. In states with high consumption and movement, such as Santa Catarina and Paraná, it was not uncommon for our correspondents, linked to the purchase, to declare themselves “outside”, waiting for those who know that, at this time, without the market for export, there is no other destination for the price of corn, except for the drop”, he comments.

At closing, November/21 was quoted at R$ 85.09 (-0.25%), January/22 was worth R$ 84.43 (-0.71%), March/22 was traded at R$ 85 .49 (+0.30%) in May/22 had a value of R$82.51 (+0.29%) and in July/22 of R$81.10 per bag (+0.37%).

In Chicago, corn closed higher due to good export demand and smaller area in the United States. “The corn price for December 21 closed a new high of 1.08% or 4.25 cents/bushel at $575.25. The July 22 price, which is important for Brazilian exports, also closed up 0.64% or $3.75 cents/bushel at $586.50”, he completes.

“The corn market closed on a high, contaminated by the trend of other grains. Good weekly export volume expectations in the US added momentum. IHS Markit estimated 2022 US corn acreage at 90.784m acres (36.94m hectares), down 1.6m from the previous data versus 93.304m acres in the previous crop year. The EIA reported that ethanol producers produced an average of 1.06 million barrels per day during the week ending 11/12, up 1,039m bpd last week but remains below 1.1+ million bpd during the end. October”, he concludes.