Porto Alegre, November 23, 2020 – The\nBrazilian domestic corn market is looking for some bearish pressure in view of\nserious situations in the near future. Production losses in the South region were\naccentuated by another week of only spotty rainfall and without resolving or\nneutralizing the summer crop losses. Only the south and southwest of Paran\u00e1 the\nsituation was mitigated last week by rain. However, most crops are now entering\nthe pollination and silking phase, and a regular climate will be necessary. In\nother regions, the situation has improved in terms of moisture, and crops are\nadvancing to the end of planting. <\/p>\n\n\n\n
The still critical evaluation point is S\u00e3o\nPaulo, which has received scattered rains and is still concerned over the crop\ndevelopment. The update on corn production at the end of the month must reflect\nthis scenario, that is, an extremely discreet summer crop that will require big\nnational consumers to import as an alternative for supply. At this point, it is\nalways important to evaluate the crop cycle in Argentina, which reaches the\nmarket only from March, as well as buying logistics in the United States, since\nthe arrival of corn imports may take up to sixty days. The reduction in domestic\nconsumption might even happen during the semester, but due to the size of the\nsummer crop, some cut in demand may not reflect the result of supply. We must\nremember that in 2016, even with a decrease in demand, the country imported 3.3\nmillion tons of corn.<\/p>\n\n\n\n
The Brazilian exchange rate scenario\nremains very volatile, as in the case of the entire 2020. The exchange rate is\npartly influenced by the external economic environment and partly by the\ninternal political and economic framework.<\/p>\n\n\n\n
In the external environment, the\nfrightening return of the pandemic in Europe and the strong advance still in\nthe United States bring back the risks of social isolation and containment of\nan expected better economic recovery at the beginning of 2021. Although some\npositive signs with the vaccines are emerging, it does not seem clear yet that\nthe first half of 2021 will really be a period of containment of the pandemic.\nDespite this, many countries are avoiding restricting social activity again,\nwhich acts as positive symptoms to the economy and markets.<\/p>\n\n\n\n
The dollar remains relatively stable at\nlow levels in the international environment. The deadlock still present in the\nU.S. elections and the absence of new short-term economic measures in the\nUnited States allow the dollar to go down. Europe has strengthened measures to\nsupport companies in the face of the strong wave caused by COVID in the early\nfall.<\/p>\n\n\n\n
The relatively stable dollar in the\nexternal environment was not the main factor for upward volatility of the real.\nThe dollar once again tested levels below BRL 5.30 last week, based on an\nexpectation that Congress will evaluate the 2021 federal budget and the tax\nreform. At the same time, there was a possible return of foreign capital to the\ncountry, with a positive capital flow of USD 3.3 billion in November. For an\neconomy that has no problems with its external accounts and is doing a great\ntrade balance this year, the re-entry of capital in the country seems natural\nand quite clear.<\/p>\n\n\n\n
Ag\u00eancia SAFRAS Latam<\/p>\n\n\n\n
Copyright 2020 –\nGrupo CMA<\/p>\n","protected":false},"excerpt":{"rendered":"
Porto Alegre, November 23, 2020 – The Brazilian domestic corn market is looking for some bearish pressure in view of serious situations in the near future. Production losses in the South region were accentuated by another week of only spotty rainfall and without resolving or neutralizing the summer crop losses. Only the south and […]<\/p>\n","protected":false},"author":5,"featured_media":9103,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[95],"tags":[],"commodity":[],"class_list":["post-21516","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-highlights-en"],"acf":[],"yoast_head":"\n