Mar 09, 2016

Mato Grosso Farmers have Sold 66% of their Soy, 60% of their Corn

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

The Mato Grosso Institute of Agricultural Economics (Imea) reported that as of the end of February, farmers in Mato Grosso had sold 66% of their anticipated soybean production, which is 6% more than last year at that time. Farmers had been very aggressive sellers earlier in the growing season in order to take advantage of stronger prices due to the weakening currency, but farmer selling has slowed over the past month due to declining domestic soybean prices. Soybean prices in the state have declined approximately R$ 4.00 per sack over the past month.

The average selling price during February of 2016 was R$ 62.38 per sack, which was higher than the average price of R$ 50.26 per sack in February of 2015. The selling is expected to pick up when farmers have to start paying off their production loans or if there is an increase in the domestic price of soybeans maybe due to a weather problem in the United States.

According to the Mato Grosso Institute of Agricultural Economics (Imea), farmers in Mato Grosso have currently sold 60% of their anticipated 2015/16 corn production which is 18% more than what they had sold last year at this time. Farmers in the state were very aggressive in forward selling their corn late last year when the Brazilian currency weakened significantly. Many farmers had forward contracted more than 50% of their anticipated corn production months before the crop was even planted. For the last month, forward sales have slowed and they are expected to remain slow until it gets closer to harvest.

Imea indicated that going forward, farmers are expected to continue to be slow sellers until they have a better idea concerning their corn production. The early safrinha corn harvest in Mato Grosso begins at the end of May or early in June.

The average selling price for corn in the state was R$ 18.84 per sack during the month of February, which was the highest thus far this growing season.