Jun 24, 2021

Corn Prices in Goias Decline in Anticipation of Harvest

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

Corn farmers in the state of Goias in central Brazil saw a significant decline in corn prices during the third week of June. According to the Institute for Strengthening of Agriculture and Livestock in Goias (Ifab), as of Friday, June 18th, the spot price for corn in the state of Goias averaged R$ 69.40 per sack (approximately $6.18 per bushel), which was down R$ 10.63 per sack from the prior week (approximately $0.95 per bushel).

The lower prices were influenced by lower corn prices on the Chicago Board of Trade and the B3 Exchange in Sao Paulo as well as the anticipation of the start of the corn harvest. The corn harvest in the state is getting off to a slower than average start due to the delayed planting of the safrinha corn.

The weather in Goias has been irregular since the corn has been planted with some areas receiving nearly normal rainfall while other areas have been much dryer than normal.

In the municipality of Cristalina, which is in eastern Goias, farmers are anticipating a wide range of corn yields depending on if the corn was irrigated or dryland. Farmers put more investments into their irrigated corn, and they are expecting yields in the range of 150 sacks per hectare (143 bu/ac). In contrast, farmers without irrigation made fewer investments in their safrinha corn and they are expecting yields in the range of 70 sacks per hectare (66.7 bu/ac).

Cristalina is the municipality in Brazil with the highest percentage of its row crops under irrigation. The municipality has the largest number of center pivot irrigation systems in Brazil.