Exchange ratio between pork and corn Improved in February in South-Central Brazil

Last month, both live pigs and corn showed significant upward movements in the South-Central region of the country, with a tight supply scenario, which resulted in a healthy exchange ratio, with a slight improvement. The ratio was 6.27 in February (that is, with 1 kilogram of live pigs it is possible to buy 6.27 kilogram of corn) against 6.17 in January.

In February, the average price of a kilogram of live pigs traded in the region closed at BRL 7.97, up 7.38% from BRL 7.43 in January. Meanwhile, the average price of a bag of corn was BRL 76.32 in South-Central Brazil in February, against BRL 72.26 in January, up 5.63%. However, in several locations, corn prices rose even more, such as in Campinas, where they went from BRL 78 at the end of January to BRL 93 at the end of February.

The trend is for the exchange ratio to worsen as live pigs already have difficulty making further advances in the first half of March, with reports of difficulties in transfers along the chain, which is natural after sharp highs. However, corn remains firm in a situation of restricted supply, a factor that is causing concern among pig farmers. The short summer crop, the weather progress, the planting of the corn second crop, and logistical issues are points of concern at the moment. Freight rates also tend to rise due to the flow of the large soybean crop.

Tags: live pigs, exchange ratio, corn, price, Brazil