May 3, 2021

Corn prices increase due to tight supply, rising demand, says Brazil's CEPEA


Restricted supply and rising demand have been pushing corn prices up since mid-February, according to researchers from Brazil's Center for Advanced Studies in Applied Economics (CEPEA).


More recently, the delay in sowing and the irregularity of the rains have increased uncertainties regarding the second harvest crop production, which has reinforced the increase in prices, now at record levels in many Brazilian markets.


It is no different with soybean prices, which are at all-time record levels in the Brazilian market, as indicated by CEPEA data. The impetus comes from heated internal and external demands and especially, from the international valuations.


As for exports, preliminary data from Secex show that the average daily shipment of soybeans in this month's partial is almost 30% above that observed in April 2020. So far, 10.6 million tonnes have been exported. The advance in the foreign market, in turn, is linked to the low surplus of the 2020/21 harvest in the United States. The unfavorable climate for soybean sowing of the 2021/22 harvest in the US also increased the values of oilseeds.


These two grains are the main ingredients of pig feed, and with rising prices, pig producers are being forced to make substitutions such as the use of wheat.


April 27, 2021/ Cepea/ Brazil.