The Brazilian corn market recorded a drop in prices throughout June.
Producer Activity and Market Dynamics
According to Safras Consultoria, there was a significant increase in sales prices by producers, who began offering volumes of cereal from the past harvest in an attempt to open up space in warehouses to receive the recently harvested crop. Consumers acted with little force in negotiations for much of the month, signaling calm regarding stocks and expecting an increase in the availability of corn at lower prices as the harvest advances.
Export Parity and Market Conditions
The export parity remained stable throughout June, even with the strong appreciation of the dollar against the real. Corn on the Chicago Mercantile Exchange was under pressure due to the good expectation of a harvest in the 2024/25 season, with a climate favorable to the development of crops.
Market Focus in the Coming Weeks
The market’s attention should be focused on the climate for the development of corn crops in the United States, as well as the progress of exports from that country. In Brazil, investors will continue to pay attention to the exchange rate. This could contribute to greater competitiveness of the country’s cereal in the export scenario if the real continues to lose strength against the dollar.
Corn Exports from Brazil in June:
| Total Revenue | US$ 128.382 million (15 working days) |
| Daily Average Revenue | US$ 8.558 million |
| Total Exported Corn | 636,946 tons |
| Daily Average Exported Corn | 42,463 tons |
| Average Price per Ton | US$ 201.60 |
Year-over-Year Comparison
Compared to June 2023, there was a 33.6% drop in the average daily export value, a 13.8% drop in the average daily quantity exported, and a 23% devaluation in the average price. The data was released by the Secretariat of Foreign Trade.