Favorable weather and harvest progress put pressure on corn prices

The summer corn harvest is progressing, while the weather has favored the development of second season crops.

According to Cepea researchers, this scenario has put pressure on cereal prices, as it keeps buyers away from purchasing new batches – these agents expect the current devaluation of the cereal to persist.

Cepea researchers point out that, until mid-March, logistical difficulties, the decline in sellers and concerns about low stocks kept prices at higher levels and also caused some buyers – fearing shortages – to accept purchasing corn at higher prices.

However, since April, the more favorable scenario in the field has kept buyers away from the spot market and prices have been falling.

According to researchers at Cepea, at the beginning of May, external and exchange rate devaluations, which reduce export parity, reinforced the pressure on domestic values.