Conab starts analyzing grain freight market routes in the states of MS and GO

The main routes in the grain freight market in the states of Mato Grosso do Sul and Goiás are now being analyzed by the National Supply Company (Conab). The assessment is part of actions to improve sector information collected by the state-owned company and is now part of the Logistics Bulletin prepared by the company, which already contained information about the market in Mato Grosso. With this, the state-owned company begins to examine data on the movement of agricultural cargo in the states responsible for producing around 49% of the country's corn and soybeans.

According to the latest bulletin published, in Mato Grosso do Sul there is an expectation of an increase in prices offered by the freight service, as the 2nd harvest corn harvest progresses. However, this increase may be impacted by adverse weather conditions recorded in the state's crops. The expectation is that the increase in prices will not be so significant, even at the peak of the harvest, since crop losses due to unfavorable weather should reduce the volume to be disposed of.

A similar scenario must be encountered by producers in Goiás. In the state of Goiás, the peak demand for freight services begins between the end of July and the beginning of August, when the majority of corn production from this 2nd harvest will be harvested. However, at least in the producing region of the municipalities of Catalão, Cristalina and Bom Jesus de Goiás, which has been generally estimated at 40%, the demand for transport must be reduced, causing, like Mato Grosso do Sul, a less upward impact on freight prices. However, even with the forecast of a drop in the corn harvest, the volume of transportation of the grain from farms to the warehouses of cereal producers and cooperatives tends to release soybeans that have not yet been sold towards the ports.

In Mato Grosso, the panorama is contrary to these states. The increase in planted area, together with an estimated moderate reduction in average yield, resulting from the heterogeneity of crops in Mato Grosso, should culminate in production close to stability. As a result, the production of the second cereal crop in Mato Grosso should be close to that obtained in the last cycle, which will move the road freight market, with a resulting increase in values ​​for closing negotiations.

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