Aug 13, 2020

Corn Prices in Mato Grosso up 29% Compared to a Year Earlier

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

As farmers in Mato Grosso prepare to start planting their 2020/21 soybean crop starting in mid-September, they are also watching the market to decide on future sales of both old crop and new crop soybeans.

Domestic soybean supplies within Brazil are getting tight and the strong demand for soybeans continues to support soybean prices in the state of Mato Grosso. According to the Mato Grosso Institute of Agricultural Economics (Imea), spot soybean prices in the state increased 4.2% last week to an average of R$ 110.17 per sack (approximately $9.50 per bushel) compared to an average price of R$ 105.66 per sack the previous week (approximately $9.10 per bushel).

In contrast, the March soybean contract at the Chicago Board of Trade declined 0.6% last week due to tensions between the United States and China.

Corn prices within the state are also very favorable. Imea reported that farmers in the state have sold 90.4% of their 2019/20 corn production, which is up 3.3% compared to June. The average spot price for corn in the state last week was R$ 37.39 per sack (approximately $3.20 per bushel), which was up 5.9% from the previous week.

For the 2020/21 corn crop, farmers in Mato Grosso have sold 46% of their anticipated production, which is up 5% from last month. In the northern regions of the state, farmers have forward contracted as much as 56% of their anticipated 2020/21 corn production. Corn prices in Mato Grosso are currently 29% higher compared to last year at this time.

During the same week when corn prices increased in Mato Grosso, the price of corn on the Chicago Board of Trade declined 2.2%.