Corn prices remain firm in August despite a weak spot market

Although negotiations involving corn are limited in the national spot market, cereal prices remain firm, according to Cepea surveys.

The ESALQ/BM&FBovespa Indicator (Campinas region - SP) varied from R$ 63 to R$ 64/60 kg bag in August. In the field, the second crop harvest is approaching its final stretch, and sowing for the first season has begun in the South of the country.

According to the Research Center, sellers continue to limit supply, with some betting on price increases, based on the final stretch of the harvest and the fact that the grains are being properly stored in parts of the regions.

On the demand side, as researchers explain, buyers who need lots for the short term are faced with higher sellers' requests, while other grain consumers have been receiving lots negotiated in advance and using stocks.

These buyers are betting that prices will ease again in the coming weeks, as high Brazilian production tends to result in high ticket inventories. Furthermore, the export pace is weakening this season.