CEPEA: ESALQ/BM&FBovespa Index for corn rises 6.8% to 26.45 reais/60-kg bag on Nov. 29

PIRACICABA, Brazil , December 5, 2013 (press release) – The domestic demand resumed increasing in late November, underpinning corn quotes in Brazil. The consuming industry, which was refrained, expecting price drops due to the significant surplus of the product, resumed operating more in the market at the end of the month. This occurred because most of these demanders are in regions in need of the corn, such as São Paulo, Rio Grande do Sul and Santa Catarina, and many need to renew stocks. Moreover, due to the significant increase of Brazilian exports over the last months, ending stocks tend to reduce, but might still be a record.

As for the international demand, in the partial of November (from Nov. 1 to 24, with 15 businesses days), Brazilian corn shipments totaled 2.6 million tons, according to preliminary data from Secex (Foreign Trade Secretariat).

In November, the ESALQ/BM&FBovespa Index for corn (Campinas-SP region; cash price, using the CDI discount rate) increased 6.78% and closed at 26.45 or 11.32 dollars per 60-kilo bag on Nov. 29. Considering the NPR discount rate, prices in Campinas-SP region (cash price) closed at 26.13 reais or 11.19 dollars per 60-kilo bag, upping 7% in the same period.

Concerning the 2013/14 summer season, the pace of activities on the field continues at a good pace. In Paraná, Seab/Deral (Secretariat of Agricultural and Supply of Paraná State) indicates that the corn planting was almost wrapped up until Nov. 28, reaching 99% of the area. As for the 2013/14 first corn crop, Seab/Deral indicates that the area may reduce 23%. The production may total 5.652 million tons, for a decrease of 21%, while yield may increase 3%, to 8,398 kilos per hectare.

In Rio Grande do Sul State, Emater (Institution for the Agricultural Development of the Government of the Rio Grande do Sul State) indicates, in a report released on Nov. 28, that the planted area have already reached 80%. Crops present a very good development. (Cepea – Brazil)

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