November 30, 2007

Brazil's CONAB dismisses corn market intervention

Brazil's agricultural firm National Commodities Corporation (CONAB) ruled out on Wednesday (November 28) any greater market intervention to stem rising prices of Brazilian corn.

Stocks will be sufficient to guarantee supply until the start of harvesting in February, according to Conab president Wagner Rossi.

The group has been on fire on its recent forecasts since corn prices started rising steeply due to a surge in exports, which are expected to reach a record 10 million tonnes this year.

On the one hand, industries have been requesting that Conab offer more corn in its periodic auctions and on the other livestock raisers have requested larger volumes in direct sales.