High demand should support corn prices this year

You low stocks, firm demand and uncertainty regarding the size of the supply 2020/21 season should keep domestic corn prices at levels above the average in 2021. According to Cepea employees, Brazilian crops in first harvest were harmed by the dry climate, mainly in the south of Country. For the second harvest, the slower and later cultivation of soybeans, compared to previous years, raises fears about how the sowing of corn and whether there will be impacts on productivity.

With Therefore, the 2020/21 season should start with uncertainty surrounding the supply of cereal – for now, official estimates indicate record production in Brazil and the world. Demand, in turn, should remain strong in the markets domestic and international.

At the Brazil, consumption continues to grow, reflecting the sector’s greater interest livestock and also new corn ethanol plants in the Midwest. To the exports should be favored by the valued dollar and the rise in international quotes. Early marketing, especially for exports, tends to restrict spot supply in the coming months, which could intensify the dispute over the product.