Corn crop conditions in the United States have worsened due to extreme weather in some states in the belt, according to the weekly analysis by Grão Direto . Heavy rains, some accompanied by hail, and high temperatures have made it difficult for crops to develop in their initial phase. However, the forecast of milder temperatures and less severe rains brings relief to North American producers, opening space for further declines in prices on the Chicago Stock Exchange.
At the beginning of the harvest, in March, soybeans gained area over corn due to the favorable price relationship. The Acreage Report revealed an increase in area for soybeans, but not as large as expected. The corn area was 1.439 million acres larger than the March forecast, which mitigates possible weather adversities and exerts downward pressure on the cereal on the Chicago Stock Exchange for the coming weeks.
In China, the prospects for increased corn production face weather challenges, with heavy hailstorms devastating crops in early conditions. If the US harvest fails, the question is who will meet the market demand. Brazil, which until now was the cheapest source, may lose this position due to the recent declines in the CBOT stock exchange, making US corn more attractive. For the seasonal demand of around 25 million tons, it is likely that China will source this volume in Brazil, offering a breathing space in prices for Brazilian corn.
The scenario remains unfavorable for corn, with high volatility in the face of general indicators. The trend is for another week of falling prices.
Source: agrolink.com.br