Corn/CEPEA: Restricted Supply Drives Prices Upward
According to CEPEA, corn prices continue to rise due to restricted supply as producers in some Brazilian regions focus on field work, limiting spot market offerings. Despite buyers facing acquisition difficulties, national and global harvests are projected to increase, while global stocks are expected to be the lowest since 2014/15.
The University of São Paulo research center reports that the appreciation of corn prices, initially observed in some regions of São Paulo earlier this month, has now extended to other markets monitored by CEPEA. This price surge is primarily driven by producers' reluctance to sell, as they are currently focused on field work, thereby limiting the supply of corn in the national spot market.
On the demand side, buyers are reporting difficulties in negotiations. In addition to the reduced availability of corn, these buyers are hesitant to acquire new batches at the higher prices requested by sellers. However, CEPEA researchers point out that despite the challenges faced by buyers in their acquisitions, new estimates indicate elevated national and global harvests, along with increased stock in Brazil. Globally, however, stocks are projected to be the lowest since the 2014/15 season.