According to Conab (Brazilian Company for Food Supply), 2008/09 corn production (summer and winter crops) is already 15 percent minor in relation to that observed in 2008, reaching only 49.9 million tons. The area was reduced by 4.4 percent (14.1 million hectares) and the productivity 11.1 percent.

The reduction, however, did not impulse prices once national stocks are still high and demand is low. On the other hand, current valuation of hog and poultry meats during the fortnight should increase use up of these sectors in short-term.

The summer crop should be 33.2 million tons, a drop of 16.9 percent comparing to 40 million tons of season before. The area reduced by 4 percent and the productivity 13.5 percent. For winter season, production is expected in 16.7 million tons, a decrease of 10.7 percent over last season.

In the early June, frost in the Southern region may have hindered the production, but, until June 15, there was not official data. Therefore, corn producers, especially in Paraná state, were not willing to negotiate, expecting news about the condition in the fields as a whole and, eventually, high in prices. Buyers, in turn, keep purchasing small volumes, driven by the low exports.

Regarding corn Brazilian exports, volume in May was 25.8 percent lower than that in April, according to Secex (Foreign Trade Secretariat), totaling 300 thousand tons.

Source: Cepea

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Links referenciados

Cepea
www.cepea.esalq.usp.br