Brazil’s corn stock will continue to be low next year

12.08.2016

An associate at Agroconsult, André Pessoa says that the corn stocks in Brazil would continue to be low next week, even if the estimates for a supercrop are confirmed. He explains that the competitiveness of the cereal, all the surpluses would be exported because of a lower cost cost comparing to the U.S., its major competitor.

Major corn cosumers in the country such as Brasil Foods, AB Inbev and Aurora Cooperative should anticipate their purchases. A complicated situation in the supply chain will continue to be the hog farmers. An eventual increase of imports of U.S. corn would not contribute to drop the cereal price in the country, according to Pessoa.

 


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