Oct 12, 2023

Farmers in Mato Grosso Continue to be Slow Sellers of Their Corn

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

Farmers in Mato Grosso, which is Brazil's largest corn producing state, continue to be slow sellers of their 2022/23 corn production as well as their anticipated 2023/24 corn production. According to the Mato Grosso Institute of Agricultural Economics (Imea), farmers in the state have sold 71.8% of their 2022/23 corn production. This represents an advance of 6.5% for the month.

Recent domestic corn prices have shown some improvement, which encouraged farmers to sell some of their corn and to open storage space for the 2023/24 soybean crop which they are currently planting. Corn prices in September declined 2.4% compared to August to an average of R$ 36.94 per sack (approximately $3.35 per bushel).

For the 2023/24 safrinha corn crop that will be planted in January and February, farmers have sold 10.5% of their anticipated production compared to 15.5% last year and 35.1% average. This represents an advance of 2.6% for the month. The current domestic corn price is the lowest in recent years and farmers are taking a cautious approach concerning their 2023/24 safrinha corn crop.

Virtually all the corn in Mato Grosso is planted after soybeans and farmers in the state had planted 14.2% of their 2023/24 soybean crop as of late last week compared to 18.6% last year and 12.2% average.