Brazilian pork and poultry producers, who recently benefited greatly from the strong export of their products to China due to the outbreak of African swine fever there, are now starting to feel a rise in house prices since corn prices, the main ingredient in animal feed, have risen sharply.

Brazilian corn prices have risen sharply in recent weeks, despite forecasts for a record crop of over 100 million tons.

Futures for corn on the São Paulo Stock Exchange since mid-May have risen 25%, while prices on the Brazilian market have risen 15%, according to the Esalq / Cepea Index.

Higher corn prices will limit the profit margins of companies when pork exports, for example, increase by 40% due to high demand from China.

However, despite the large domestic corn crop, rising prices on the Chicago Mercantile Exchange made Brazilian corn very competitive in the world market, which stimulates exports and ultimately leads to a reduction in local supplies.

According to the Anec Grain Exporters Association, corn is expected to record a record in 2019 and possibly exceed 32 million tons.