The corn futures market in Brazil has sought to maintain its momentum and records new and good increases in this first session of the week on B3. Prices rose between 1.3% and 1.5% in the most traded positions, around 12:30 pm (Brasília time) this Monday (11), taking May to R$61.59 and September - an important reference for the second harvest - at R$61.83 per bag.

"In the domestic market, negotiations remain slow. Weather conditions for the off-season and formation of supply are the main focus of operators. On the external scene, the high supply of cereal puts pressure on futures", states the Pátria Agronegócios team.

Cereal futures rise in Brazil despite lows recorded on the Chicago Stock Exchange and the dollar against the real, with an eye on the weather conditions for the off-season, which include forecasts of a new heat wave reaching key production regions . In an interview with Notícias Agrícolas, meteorologist Amanda Sousa, from Meteored, the next few days will be marked by very high temperatures, close to 40ºC throughout the southern half of the country.

And there are reports from several rural producers indicating the suffering of off-season crops due to the lack of adequate rain in recent weeks, especially in Paraná. Planting continues to advance rapidly, as the ideal window has passed and climate risks are therefore greater. Around 88% of the area has already been sown.

"The off-season continues to show that the area should fall by close to one million hectares this year compared to the previous one and this, for the first time, since the second crop began. The crop always grew year after year,
reaching 17.5 million hectares that were planted last year. Mato Grosso itself may not reach 7 million hectares this year, compared to almost 7.5 million planted last year. The expectation is that this harvest will reach close to 90 million tons, compared to more than 106 million harvested last year. Furthermore, commercialization is slow in Brazil, with only 16% already completed", explains Vlamir Brandalizze, market consultant at Brandalizze Consulting.

Therefore, the tendency is for this to be another week of calm and few deals in the Brazilian market. The producer's focus has been concentrated on completing the planting of the second crop, the harvest of the summer crop and, in some cases, the conclusion of the soybean harvest, as is the case in Rio Grande do Sul.

Brandalizze also explains that cereal exports may lose some of their pace from now on, as ports will have to give more space to soybeans, as traditionally happens at this time of year. Internally, demand should be a little better with the feed sector looking for a little more corn now, since in this period, explains the consultant, "the month is one of the best in terms of demand since the period is with a strong rhythm of chicken, egg and pork production, where corn goes in greater volume, which could give rise to small positive adjustments in the coming weeks".

CHICAGO SCHOLARSHIP

On the Chicago Stock Exchange, the corn market has a stable Monday, still finishing digesting the numbers from the latest monthly supply and demand bulletin from the USDA (United States Department of Agriculture) reported on Friday (8). Thus, around 12:40 pm (Brasília time), prices fell between 1.25 and 1.75 points, with May worth US$ 4.38 and September, US$ 4.58 per bushel.