Corn price in MG fell 3,5% in the last week

The Minas Gerais corn market remains little busy in terms of trading volume, says analyst Bernardo Lopes, from Tarken, a Brazilian agritech that offers a marketplace for grain trading. According to him, buyers have chosen to pull their stocks while grain prices remain at current levels. “Considering that the last few days have seen a drop of around 3,5% in the value of corn on the physical market, buyers have struggled to wait for an even greater decline to return to their purchasing routine,” he says.

On the other hand, according to Lopes, producers with greater cash flow end up keeping corn stored longer, aiming for peaks in grain prices in the future. Those who need to capitalize more urgently end up making specific negotiations as the buyer's offers please.

Corn Price

The main Tarken corn prices for this Monday are:

• Uberlândia: R＄82,00
• Unai: R＄77,70
• Itanhandu: R＄86,00

In addition to differences in price, two other factors make corn negotiations difficult: shipping costs and payment deadlines. “This scenario is not limited to the state of Minas Gerais, but is a problem on a national scale. Many buyers offer with terms longer than 15 days, contradicting producers who have conditioned their sales to cash payments or with much shorter terms, such as 3 to 7 days, for example”, analyzes Bernardo.

Sorghum is now beginning to be explored by some purchasing companies, especially pig farmers. There is an expectation of harvesting the grain in regions such as: Minas Central, Triângulo Mineiro and Cerrado. As a result, it becomes an alternative, sometimes more viable, than corn. Usually, it is estimated that a bag of sorghum is around 75 to 80% of the value of a bag of corn.

Corn Offers in Minas

The signal from most buyers on Marketplace Tarken is to immerse themselves in the market in case the decline continues. In Pará de Minas, one of the state's purchasing hubs, the target price cut is around R＄84/sc.

Soybean Price

As for soybeans, the trading volume spot it is much smaller considering the time elapsed in relation to the 2022 harvest. The physical market, as well as the corn market, showed a decline, but on a smaller scale: around 1,6%.

Today's main soybean prices, according to Tarken, are:

• Uberlândia: R＄174,80
• Unai: R＄172,00
• Itanhandu: R＄184,65

External market

The war between Ukraine and Russia continues to be a major influencing factor in the price of grains on the Chicago Mercantile Exchange, consequently influencing the Brazilian market. Recently, attacks were reported on Kyiv, which contributed to a considerable increase in the value of Wheat.

At the same time, soybean prices operate at lower levels, especially in relation to contracts scheduled for delivery from August onwards.

Corn, although operating at an increase in relation to the last few days (considering contracts for July and September), is currently at a level considered low when analyzing the price history.

In regions where there is close monitoring by Cepea (Center for Advanced Studies in Applied Economics), corn is already operating at the lowest values ​​of 2022, according to the ESALQ indicator, with a decline of more than 2% in the last week.

Finally, another factor impacting the national grain trade is the import of fertilizers and costs of agricultural inputs. According to data released last Friday by the maritime agency Cargonave, imports accumulated up to May increased by around 16,5% compared to the same period last year. The moment of uncertainty driven by recent global events is largely responsible for this.