High liquidity in the Brazilian corn futures market
Corn prices are mainly formed by domestic supply and demand, and, in many cases, by regional conditions. This aspect leads, as recently observed, to gaps between domestic and international values in the short-term – although prices are cointegrated in the long-run. This is partly related to the fact that corn trades among countries are equivalent to slightly more than 15% of the production – as for soybean and byproducts, as a comparison, this number is roughly two-thirds of the global production
Fonte: CEPEA
