09/11/2023
๐ฝ ๐ Corn Prices from Brazil: A Global Trend
Brazil is the second largest corn exporter in the world, and its corn prices have been trending lower in recent months. This is due to several factors, including:
๐ฝ Increased production: Brazil is expected to produce a record corn crop in 2023/24, which will put downward pressure on prices.
๐ฝ Weaker demand: Global demand for corn is expected to slow in 2023/24, due to a number of factors, including the ongoing war in Ukraine and the global economic slowdown.
๐ฝ Stronger Brazilian real: The Brazilian real has appreciated against the US dollar in recent months, which makes Brazilian corn exports more expensive for foreign buyers.
The following market figures show the trend in corn prices from Brazil:
The average export price of corn from Brazil was $317 per metric ton in August 2023, down from $340 per metric ton in January 2023.
The Chicago Board of Trade (CBOT) corn futures contract, which is a benchmark for global corn prices, is trading at around $250 per metric ton, down from $300 per metric ton in January 2023.
The trend in corn prices from Brazil is likely to continue in the coming months, as increased production and weaker demand put downward pressure on prices. This will have implications for both Brazilian farmers and global corn consumers.
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