Sep 22, 2021
Mato Grosso Farmers Sold 86% Old Corn Crop and 30% New Crop
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Farmers in Mato Grosso increased their 2020/21 corn sales in August to 86.6% according to the Mato Grosso Institute of Agricultural Economics (Imea). The average sale price in August was R$ 73.74 per sack (approximately $6.45 per bushel).
For the 2021/22 safrinha corn which will be planted next February, farmers have forward contracted 30.8% of their anticipated production for an average price during August of R$ 56.68 per sack (approximately $4.95 per bushel).
Farmers do not want to forward contract too much of their anticipated safrinha corn production for fear of missing out on potential future price increases like what happened last growing season. Last year, some farmers forward contracted as much as 60% of their anticipated production for what they considered a good price at the time. Unfortunately for them, domestic corn prices in Brazil basically doubled when it became clear the extent of the damage to the safrinha corn crop. They do not want to repeat that same mistake again this year.