May 11, 2015

Corn prices fall in southern Goias

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Corn farmers in Goias are anticipating very high safrinha corn yields this year due to the better than average weather that continues to benefit the corn crop. In anticipation of a big corn crop in Goias as well as in other regions of central Brazil, corn prices have tumbled in recent days. In the municipality of Jatai, which is located in southern Goias, the price of corn has fallen 20% over the past 30 days. Corn prices that were in the range of R$ 23 per sack just a month ago have now fallen to R$ 19 per sack.

Safrinha corn yields in southern Goias are expected to be as high as 90 sacks per hectare (5,400 kg/ha or 83 bu/ac) or more, easily surpassing yields of recent years.

Farmers in the region have been increasing their safrinha corn acreage at the expense of grain sorghum. Grain sorghum is viewed as a better alternative to safrinha corn if planting is delayed because grain sorghum can produce a grain yield even under the dry conditions encountered during the start of the dry season. The greater use of early maturing soybeans has allowed farmers in the region to harvest their soybeans early and then dedicate more of their second crop to corn.

Grain sorghum generally yields less than corn and it is also priced below corn. Currently, the price of grain sorghum at Jatai is in the range of R$ 17 per sack.