Brazil’s Corn Market Stays Resilient Amid Challenges 27 January 2025

Brazil’s domestic corn market is holding firm despite the seasonal arrival of the summer crop. While export momentum has slowed, sales of the 2024 crop continue, and early sales of the new season are underway in the south. 

This is a surprising development given the tight supply expected in the first half of the year and the need to accommodate the soybean harvest. However, logistical challenges are looming ;

• Rising fuel prices (expected in February).
• Overlapping soybean harvest and corn planting periods.

Meanwhile, improved rainfall in Argentina and southern Brazil is providing some relief for the summer crop outlook.

Global Trade and Macroeconomic Trends

• The US dollar remains strong (index at 109), supported by high treasury yields. The Federal Reserve is expected to keep interest rates unchanged at its January 29 meeting.
• A new US trade strategy could favor agribusiness partnerships with China and ease geopolitical tensions in the Black Sea region.

Brazil's Currency Dynamics

Last week, the Brazilian real traded between BRL 5.90–6.10/USD . All eyes are on the Central Bank’s upcoming decision on January 29 to potentially raise the Selic rate by 1%. This move could stabilize the currency and restore investor confidence.

At GrainFuel Nexus, we’re tracking these shifts to help you navigate the evolving global grain market. 

Stay ahead ,and subscribe to our Market insights , and customized reports .  

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