Sílvio Ávila
B
razil celebrates the harvest of a
bumper crop, with 232 million
tons of grains. Corn did its part
and reached 96.025 million
tons, of which 68.5 percent,
or 65 million tons came from the second
crop, concentrated in the Brazilian Cerra-
do and neighboring regions. Even so, there
was no reason for commemorations: low
prices, fluctuating exchange rate because
of the political scenario, and a picture of a
global super crop in light of demand run-
ning behind the volume produced, were
factors that turned corn sales into a big
challenge for the farmers.
Warehousing deficit and weak soybean
prices in the first half of 2017 further de-
layed the transportation of the crop and
forced many farmers to store their winter
corn in the open in the yards of farms and
cereal dealers. Rubens Augusto deMiranda,
researcher at Embrapa Corn and Sorghum,
in Sete Lagoas (MG), has it that this scenar-
io had its beginning before the 2016 season
and exerted great influence on the record
prices, which soon suffered a reversal.
Half way through 2016, prices per sack
reached averages of over R$ 30 in Mato
Grosso, R$ 40 in the Country and reached
a peak of R$ 70 in consuming regions,
something never seen before. The fact is,
international demand heated up the mar-
ket. In 2015, Brazil celebrated record corn
exports, with almost 29 million tons, and
in the first three months in 2016 ship-
ments abroad amounted to 11.8 million
There isapricefor
everything
The credit for corn plantings
inthe2016/17growingseasongoestofavorableclimateandfineweather.
Withabumpercrop,thechallengeconsistsinsellingitwithprofits
The sector needs to be creative, add value and seek structural support
30
n
n
n
Combination of factors
A number of internal and external factors corroborates toward the forecast for the continuity of the low prices, comments analyst
Thomé Luiz FreireGuth, fromConab. The picture reflects a huge global crop, further increasing the volumes of the stocks, whilst weaken-
ing thedomesticprices (whichmade theJuneexportspossible), but anot sopositiveexchange rate. “Thedifference really lies in thehuge
domestic and foreign offer”, he summarizes. He believes that corn prices in Brazil will remain below the 2016 ceiling price, but has it that
the difficulty in commercialization increases the pressure for solutions in warehousing infrastructure, transportation and logistics in the
Center-West,aregionthathasbeencomingupwithsolutions,liketheNorthArch,butstillataslowerspeedanddimensionthanrequired.
“Theseprices also lend relevant support to theproteinsupply chains,whichare facingdifficulties in this season that stemfromsuchsitu-
ations as the “WeakMeat Operation”, he cites. Finally, heunderstands that the farmerswill have todo their part andbe creativeanddiscern-
ing, not only inmanaging their sales, but in dimensioning the coming crop. “The Center-West has the chance to choose other products for
theirsecondcrop,butthereisalimitwithregardtowhatthemarketisabletoabsorb,nomatterwhatagriculturalcropisatstake”,Guthwarns.
