Sep 03, 2020

Spot Commodity Prices in Mato Grosso near Record High Levels

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

Farmers in Mato Grosso, Brazil are getting ready to start planting their 2020/21 soybeans in less than two weeks and they are looking at some very good commodity prices. The available soybean supplies in Brazil are very tight and crushers have been bidding up the prices on the spot market.

The Mato Grosso Institute of Agricultural Economics (Imea) reported that the average spot price for soybeans in the state last week was R$ 124.83 per sack (approximately $10.70 per bushel), which was up 3.7% compared to the R$ 120.28 the prior week (approximately $10.31 per bushel). The March soybean contract on the Chicago Board of Trade increased 1.9% last week due to dryness concerns across the Corn Belt.

Soybean prices for March delivery in Mato Grosso are not as high as the spot market. The price of soybeans for March export was R$ 100.39 per sack (approximately $8.60 per bushel).

Spot corn prices in Mato Grosso are similarly very elevated. The spot price for corn last week in Mato Grosso averaged R$ 43.92 per sack (approximately $3.76 per bushel), which was up 5.8% compared to the prior week. The price of corn in Mato Grosso for July 2021 delivery was R$ 25.69 per sack last week (approximately $2.25 per bushel).