Jun 15, 2023

Mato Grosso Farmers Selling Their Corn Despite Low Prices

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

Farmers in the state of Mato Grosso have sold 44% of their anticipated 2022/23 safrinha corn production, which represents an increase of 6% during the month of May. Mato Grosso is the largest safrinha corn producing state in Brazil responsible for slightly less than half of Brazil's safrinha corn production. The safrinha production, which is planted after soybeans are harvested, represents about 76% of Brazil's total corn production.

The safrinha corn harvest in the state is just getting underway and a lack of storage space may force farmers to sell their corn despite disappointing corn prices. The lack of storage is due to farmers still holding a significant portion of their record 2022/23 soybean crop. The average price of corn in Mato Grosso during May was R$ 38.45 per sack (approximately $3.50 per bushel), which was down 21% compared to April.

For the 2023/24 corn crop, farmers in the state have forward contracted 3.7% of their anticipated production, which represented an advance of only 0.6% from April. The slow sales are due to low prices. The average price during May for the 2023/24 corn crop was R$ 32.78 per sack or approximately $3.00 per bushel, which is down 21% from April.