42
H
igher domestic prices jeopar-
dized the competitiveness of
corn in the foreignmarket and
reduced shipments abroad in
2016. On the other hand, im-
port opportunities were created. National
supply soared, further pressing the prices.
By late November 2016, for example, pric-
es reached the lowest level in the year. In
the second half (from July to December
2016), Brazilian exports reached 9.6 mil-
lion tons, against 17.3 million tons export-
ed in the same period in 2015.
Throughout 2016, the high prices in-
duced the domestic buyers to adjust their
acquisition strategies. Besides participat-
ingmore actively in themarket, becoming
more aggressive in their negotiations and
competing with export tradings, buyers
equally adhered to the import alternative.
The National Food Supply Agency
(Conab) estimated Brazil’s 2015/16 to-
tal corn crop at 66.57 million tons. It was
the first drop in production in five grow-
ing seasons. Domestic consumption re-
mained at 53.38 million tons, generating a
surplus of 25.98 million tons, the smallest
Everything
at
home
Skyrocketing corn prices induced themeat sectors to import the cereal
Inor Ag. Assmann
