Oct 17, 2019

Mato Grosso Farmers Increase Forward Contracting of Corn

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

The Mato Grosso Institute of Agricultural Economics (Imea), reported that farmers in the state have sold 93% of their 2018/19 corn production, which is up 6% from the previous month. Domestic prices for corn in the state last month averaged R$ 25.75 per sack (approximately $2.90 per bushel), which was 22% higher than last year. The price is approximately $0.50 per bushel higher than last year at this time.

The improved corn prices are being attributed to increased demand for corn from newly built corn-only ethanol facilities in the state.

For the 2019/20 corn crop, farmers have sold 42% of their anticipated production, which was up 6% from last month. The average price last month for the 2019/20 corn was R$ 23.22 per sack (approximately $2.60 per bushel), which was up 19% compared to last year.

Mato Grosso is the largest corn producing state in Brazil and virtually all the corn produced in the state is safrinha production, which is planted after the first crop of soybeans are harvested. The safrinha corn is usually planted during January and February, but there is already some concerns that the delayed planting of the soybeans may result is some of the safrinha corn being planted after the ideal planting window closes about the third week of February.