Shipments of maize which were behind schedule until September, have reached 8.5 million tons, surpassing the expectations of the National Supply Company (Conab) for 2010. This volume was considered the minimum level to regulate the internal market after two years of excessive supply and prices below production costs.
After intense intervention by the federal government, with aid directed mainly to producers in Mato Grosso state, the market has returned to normal. While sales of maize on the Brazilian market continue to be relatively slow, trading for exportation has been notable. The good international demand, the flow facilitated by government auctions, and doubts as to the Argentine crop, have
favored exportations. As to the Esalq/BM&F Bovespa, between 20th and 27th December, there was a decline of 0.63%, closing at R$ 28,33 per 60kg bag.
This is a drop of 1.02% in a month. Brazilian shipments reached 8.87 million tons up to November. Between January and August, only 3.5 million tons had been shipped. Conab had reduced their forecast from 8.5 million to 8 million tons. Of the total exported, 60% is from Mato Grosso state. The state has already exported 5.3 million tons this year. The price of the product, which had fallen to R$ 6 per bag, are now in the region of R$ 15 in the main producing regions of the state.