The dollar’s decline took support from exports and demand for corn and ended up affecting the cereal on the São Paulo Commodity Exchange (B3), according to information released by TF Agroeconomia. “The 1.13% decline in the US dollar was fatal for corn prices in Brazil, because it took away all the support necessary for the formation of good export prices, which could wipe out the large volume of supply in the second crop. . With this, the weekly prices retreated”, he comments.
“As a result, futures prices closed slightly higher: the November/22 contract closed at R$89.66, up by R$0.19 on the day and down by R$0.16 on the week (last 5 trading sessions); January/22 closed at R$93.45, up R$0.25 on the day and down by R$0.32 on the week and March/23 closed at R$95.98, down by R$0.17 on the day and R$ 0.16 per week”, he adds.
The December price closed slightly up 0.22% or $1.50 cents/bushel at $687.0. The price for March 2023, the start of our summer crop, closed up 0.29% or $2.0/bushel at $692.25.
“Supported by wheat advances. In addition, markets await news about the war in the Black Sea region and the impact on trade flows. In Argentina, sowing and production expectations for the new crop fall, due to the persistent drought. Firm dollar, conditioned to high prices”, he indicates. “USDA reported that corn orders were 182k MT for the week ending 9/15, well below expected sales of 400k to 850k MT. Shipments amounted to 563,029 MT. That was a high MY and up 32% for the week. USDA FAS has not reported thousands sales for the week – with commitments of 240k MT for the season in the first 3 weeks,” he concludes.