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Palouser
Senior Advisor

Internal price of Brazilian corn collapsing

Between the inability to ship and the cost of shipping - plus the Chicago price shock after the last report - the price of corn in the interior is down around $2.50/bu. The continued lack of infrastructure is now visibly costing Brazil big time. Meanwhile, several million tns of corn are needed in the NE part of the country. This will be supplied by Argintinian imports because there's no way to ship corn that direction within Brazil. With shipping bottlenecks the situation is expecrted to continue and poor weather isn't helping.

 

Apparently the interior price is below a government minimum of $2.95. Exactly what this triggers I don't know since solutions seem out of reach for now. More fuel and fertilizer subsidies?

 

How anxious do you think Brazilian farmers will be to frow more corn? This problem has been staring them in the face since the value of a bu of corn against the shipping cost and poor logistics was already understood.

 

I'll predict a big backing off on corn in the interior until logistics catch up - and given the history that may be many years. There's a lesson in this for us too.

 

 

 

 

2 Replies
giolucas
Veteran Advisor

Re: Internal price of Brazilian corn collapsing

Simple economics will rule situation .
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p-oed Farmer
Senior Contributor

Re: Internal price of Brazilian corn collapsing

Push back the jungle and keep getting bigger......THAT's how ya make more money.....p-oed

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