Apr 13, 2023

Farmers in Mato Grosso Hoping for Higher Corn Prices

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

Farmers in Mato Grosso have forward contracted 33.7% of their anticipated safrinha corn production, which is up 3.7% compared to the prior month according to the Mato Grosso Institute of Agricultural Economics (Imea). This is approximately 20% behind 2022 and average. Farmers are confident in their corn production, but they would like to see higher prices before they sell more of their corn. The average price during March was R$ 54.82 per sack or approximately $4.85 per bushel.

Mato Grosso is Brazil's largest safrinha corn producing state and approximately 60% of the soybeans in the state are followed by a second crop of corn. This percentage has been increasing steadily in recent years. Approximately 80% of the safrinha corn in the state was planted within the ideal planting window and the weather thus far has been beneficial for crop development. The earlier planted safrinha corn is now entering its critical reproductive phase.

For the 2023/24 safrinha corn crop which will be planted next January and February, farmeres in Mato Grosso have forward contracted 2.5% of their anticipated production compared to 9.1% last year and 8.6% average. The average price thus far for the 2023/24 crop is R$ 47.72 per sack or approximately $4.20 per bushel.