Apr 25, 2018
Brazil Government Authorized the sale of One Million Tons of Corn
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The Brazilian government announced last week that they authorized a series of auctions to sell one million tons of corn held in storage by Conab. The goal is to increase the supply of corn in the local markets in order to aid livestock producers who are worried about high feed costs. The first auction of the corn could happen as soon as Friday, April 27, 2018.
This action is to help livestock producers throughout Brazil where the local price of corn is equal to or is higher than the threshold price authorized to sell government stocks. In the state of Mato Grosso, that threshold price is R$ 19.95 per sack (approximately $2.75 per bushel).
The first auction of up to 200,000 tons of corn is expected as soon as this Friday. Bidders must be producers of poultry, hogs, beef, sheep or goats and they must be registered in the National Registry System of Rural Producers (Sican). This is to avoid speculators, grain merchants, or exporters from bidding on the corn.