Jul 20, 2023

Corn Yields are Good in Mato Grosso, Corn Prices Disappoint

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

The state of Mato Grosso produces about half of Brazil's safrinha corn and reports from around the state are indicating very good corn yields and disappointing corn prices. The Mato Grosso Institute of Agricultural Economics (Imea) is forecasting a record statewide safrinha corn yield of 112 sacks per hectare (106.8 bu/ac) and a total production of approximately 50 million tons.

Farmers in the municipality of Nova Mutum in south-central Mato Grosso, are pleased with their safrinha corn yields, but they are very disappointed with the current corn prices.

The director of the Rural Union of Nova Mutum/MT reported that farmers have harvested 90% of their corn with yields in the range of 114 to 115 sacks per hectare (108.7 to 109.7 bu/ac). This is about 15 sacks per hectare (14 bu/ac) higher than the 2021/22 crop that averaged 100 sacks per hectare (95.4 bu/ac).

At the present time, farmer selling is nearly at a standstill due to low corn prices. The current corn prices are in the range of R$ 31.00 to R4 33.00 per sack (approximately $2.90 to $3.05 per bushel). Farmers who forward contracted a sizable portion of their 2022/23 corn production earlier in 2023 when prices were higher, will make a profit on their corn. Farmers who did not forward contract their corn, are now holding on to their corn as long as possible in the hope of improved prices. Corn prices could improve when harvest pressure eases or if a weather concern develops in the U.S.

Farmers in the region are in the process of purchasing their inputs for the 2023/24 soybean crop which they will be able to start planting on September 16, 2023.