Corn/CEPEA: Corn Prices Remain Firm in Brazil and the US
According to CEPEA, corn prices are holding firm in both Brazil and the US. In Brazil, farmer focus on field work limits supply, while strong demand drives buyers to replenish stocks. However, geopolitical uncertainties and domestic logistics concerns restrict trade volume. Internationally, robust US demand and rising oil prices bolster corn values, enhancing ethanol's competitiveness.
According to a report from the CEPEA research center at the University of São Paulo, corn prices continue to hold firm in both the Brazilian and US markets. Domestically in Brazil, the focus of farmers on field activities is limiting the liquidity of corn, while demand remains robust, with buyers actively seeking to replenish their stocks. However, CEPEA researchers indicate that the volume of transactions remains restricted due to uncertainties generated by the current geopolitical context and concerns related to national logistics, particularly potential disruptions in cargo transportation. This scenario reinforces the cautious stance of market participants.
Regarding the international market, cereal prices have risen, driven by strong demand from the United States and the appreciation of oil prices. The increase in oil prices improves the relative competitiveness of ethanol, which is primarily produced from corn, further supporting the upward trend in corn values.