Sep 03, 2014

Cost of Production Estimates for 2013/14 Growing Season in Brazil

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

Brazilian farmers will go to the field later this month to start planting their 2014/15 crops facing some of the lowest commodity prices in recent years. With lower prices and higher costs, there is a difference in opinion as to how this might impact soybean and corn acreage in Brazil. Below is a table I published in my October 15, 2013 weekly report.

This information was published by Conab in their October 2013 Crop Report, which was their first report of the 2013/14 growing season. Remember, these production costs are therefore one year old and the cost of production has increased over the previous year, but it will still give you a general idea about the cost of producing crops in Brazil. I expect Conab to issue new cost of production estimates in their October 2014 Crop Report and when they do, I will update this chart.

Cost of Producing Soybeans and Corn in Brazil - 2013/14

Soybeans - GMO Total Cost R$/60 kg Total Cost US$/bushel
Sorriso - central Mato Grosso 40.37 8.15
Campo Novo do Parecis - western Mato Grosso 45.269.14
Primavera do Leste - southeastern Mato Grosso 45.46 9.18
Chapadao do Sul - northern Mato Grosso do Sul45.65 9.22
Brasilia - Federal District 38.967.87
Rio Verde - southern Goias 38.047.68
Londrina - northern Parana 38.03 7.68
Campo Mourao - western Parana33.31 6.72
Santa Rosa - northwestern Rio Grande do Sul 43.69 8.82
Passo Fundo - eastern Rio Grande do Sul 47.89 9.67
Barreiras - western Bahia42.58 8.60
Balsas - Maranhao 39.207.91
Averaged across all locations41.53 8.38
 
Soybeans - Conventional (non GMO)
Sorriso - central Mato Grosso 40.08 8.09
Campo Novo do Parecis - western Mato Grosso 44.268.94
Primavera do Leste - southeastern Mato Grosso46.79 9.45
Londrina - northern Parana 43.27 8.74
Campo Mourao - western Parana35.15 7.10
Unai - northwestern Minas Gerais47.489.59
Averaged across all locations 42.83 8.65
 
Corn - Full Season
Primavera do Leste - southeastern Mato Grosso 26.335.08
Chapadao do Sul - northern Mato Grosso do Sul17.48 3.37
Londrina - northern Parana 22.464.34
Campo Mourao - western Parana26.98 5.21
Passo Fundo - eastern Rio Grande do Sul22.184.28
Barreiras - western Bahia22.26 4.30
Balsas - Maranhao 19.333.73
Unai - northwestern Minas Gerais25.584.94
Averaged across all locations22.824.40
 
Corn - Safrinha
Sorriso - central Mato Grosso 20.153.89
Vera - central Mato Grosso 20.914.04
Campo Novo do Parecis - western Mato Grosso 18.043.48
Campo Verde - southern Mato Grosso 18.923.65
Chapadao do Sul - northern Mato Grosso do Sul24.49 4.73
Rio Verde - southern Goias 27.355.28
Londrina - northern Parana24.644.76
Campo Mourao - western Parana31.616.10
Ubirata - western Parana 24.484.73
Averaged across all locations23.394.51

Source: Conab's first estimate of the 2013/14 growing season - October 2013