The last week presented stable weather in the State of Paraná. This allowed the advancement of the second 2023/24 corn harvest. It has already reached 92% of the planted area. Some regions have completed the harvest. The information is from the Department of Agriculture.
Harvesting in the final stretch reduces the availability of corn on the domestic market. This tends to increase the price. Last week, the price of a 60 kg bag closed at R$49,96. The increase was more than 12% compared to the close of August 2023. This increase contrasts with the drop of more than 16% in the price of the commodity on the Chicago stock exchange.
Higher prices in the domestic market are supported by the rise in the dollar. The dollar rose more than 12%. Lower product availability also contributes. However, the scenario is unstable. Fluctuations in the dollar can put downward pressure on prices. Furthermore, the start of the American harvest could cause greater pressure on international prices.
The wheat harvest in Paraná reached 1%. Initial productivity is low and will hardly cover costs, say technicians from the state's Department of Agriculture. Harvester activity is concentrated in the North region. This region was impacted by drought between the end of May and the beginning of July. Some municipalities recorded more than 40 days without rain.
Due to the drought, 14% of the state's crops are classified as poor. 21% are classified as average and 65% as good. Bad crops are mainly concentrated in the North region. Approximately 70% of these crops are in this region.
The production cost of one hectare of wheat, at May prices, was estimated at R$3.236,02. To cover this cost, the producer would need to sell 43 bags of wheat at a price of R$76,00 per bag. Under normal conditions, it would be possible to produce this amount in one hectare. However, the lack of rain restricted productivity.
Initial reports indicate productivity between 30 and 35 bags per hectare in crops affected by the drought. This volume probably generates losses for the producer.
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