Source: APKinform (Ukraine)
In February, Brazil experienced a notable rise in corn prices, primarily due to supply limitations resulting from a low first harvest of the crop, as reported by Safras&Mercado.
On average, corn prices increased by 18% over the month, with rises of 11% in Paraná, 6.1% in Mato Grosso, 1.3% in Rio Grande do Sul, and a substantial 25% in São Paulo.
This year’s first-crop corn harvest in the country is approximately 25 million tons, while carryover stocks are anticipated to be around 8 million tons.
According to expert Paulo Molinari, “Demand in the first half of the year is projected to be between 40 and 44 million tons, indicating a supply shortfall that will require second crop corn to fill the gap, expected to enter the market between June and July. This situation will generate considerable attention and potential tension during the initial part of the year.”
He further pointed out that farmers are increasingly focusing on soybean harvesting, which is currently underway, and on marketing oilseeds, consequently sidelining corn. This shift exacerbates supply constraints and drives prices upward.
