Management Report 2020 slide image

Management Report 2020

Management Report 2020 SLC Agrícola Corn Figure 16 US Cents/bu 750 700 650 600 550 500 450 Corn prices in international market and Brazil 400 три 350 300 Jan-19 Apr-19 Corn CBOT Corn - B3 Jul-19 Oct-19 Jan -20 Apr-20 Jul-20 Oct-20 Jan-21 Source: Bloomberg Corn spot prices quoted on the CBOT registered significant volatility over 2020, during which, after a downward cycle during April, prices followed a solid path of recovery and appreciation in both in the international (Chi- cago) and domestic (B3) markets. The period of the sharpest increases in corn prices was the last quar- ter of the year. In July, August and September, prices on the U.S. exchange showed signs of recovery after the corn planted area in the country was affected by ad- verse weather conditions. Later, in the last quarter of the year, the scenario of firm demand, mainly due to record corn shipments by the U.S. to China, continued to provide support for corn prices in Chi- cago. In Brazil, the market also remained strong over the entire year due to demand from the ani- mal protein industry and from export markets. Corn production regions in the Brazilian South and Argentina faced adverse weather conditions for the development of first-crop corn, with production data still to confirm the volumes produced. Accord- ingly, local supply and demand dynamics, com- bined with the conditions marked by uncertainty in the United States, set the tone for prices in the do- mestic market. 26
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