Soy and corn prices decrease due to accelerated sales to free up warehouses

Even in the off-season, soybean and corn prices are falling in Brazil. According to researchers at the Center for Advanced Studies in Applied Economics (Cepea/Esalq/USP), the atypical movement is due to the need for producers to free up storage space for the summer harvest.

A survey by the institution shows that soybean prices are at their lowest level since July, which does not usually happen at this time of year. The 60-kilogram sack of the oilseed was worth R$162.72 last Friday, an amount 4.9% less than the previous week, according to the Esalq/BM&FBovespa indicator based on the port of Paranaguá, in Paraná. The Cepea/Esalq indicator, based on the state average, estimates the bag at R$ 159.80, also 4.9% below the price registered a week before.

See the chart below for a history of Brazilian soy and corn exports from 2019 onwards. Data are from DataLiner:

Brazilian Soy and Corn Exports (HS 1201 and 1005) | Jan 2019 to Sep 2021 | WTMT

Source: DataLiner (To request a DataLiner demo click here)

In a statement, the Cepea researchers say that farmers are freeing up their warehouses for the arrival of the 2021/22 harvest, which could be a record and increase stock. With favorable weather, planting has already entered the final stretch in the main producing regions.

In the case of corn, the values ​​in the port of Paranaguá surpassed the prices in the countryside based in Campinas (SP). According to Cepea, this has not happened since October 2020 and is linked to low liquidity in the domestic market, in addition to the sale to reduce inventories.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/agronegocios/noticia/2021/11/08/venda-acelerada-de-soja-e-milho-para-liberar-armazens-pressiona-precos.ghtml

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