Corn supply is limited in the spot market and exports are gaining momentum

Aware of recent price increases at ports and in the foreign market, Brazilian sellers are limiting the supply of corn on the spot market and/or asking for firm prices in new deals, according to Cepea surveys.

On the other hand, domestic demand remains weak, a context that prevents more intense price increases, researchers explain. Consumers are using inventories, waiting for an increase in supply, based on the possibility that producers will need to sell.

It's worth noting that the harvest is expected to be a record in Brazil and the United States. Meanwhile, external demand is heating up. Corn exports, which were weak until July, have recovered, mainly reflecting early negotiations for the grain.

Furthermore, the increase in export parity and the consequent greater interest in sales to the international market also support domestic values and maintain expectations of further advances.

The daily shipping rate in August 25 exceeded that observed in August 24 by 18%, with the volume transported also 13% higher in the same comparison, totaling 6.84 million tons, according to Secex data analyzed by Cepea.