Oct 23, 2023

Safrinha Corn Seed Purchases 42% Slower Than 3-Year Average

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

Brazilian farmers are not enthusiastic about their 2023/24 safrinha corn crop and low prices are the main reason. For the last few years, Brazilian farmers sold their corn for R$ 70.00 to as much as R$ 100 per sack (approximately $6.35 to 9.00 per bushel). The current price of corn is in the range of R$ 30.00 to R$ 50.00 per sack (approximately $3.75 to 4.50 per bushel)

According to the consulting firm Agrinvest, Brazilian farmers have been very slow in purchasing their corn seed for the 2023/24 safrinha crop. Until the start of October, farmers had purchased 34% of the seed needed to plant the crop compared to 76% average for the last three years, or a decline of 42%.

Slow purchases now does not necessarily mean they will not accelerate their purchases later. Farmers are currently occupied planting soybeans and they are worried about the erratic weather. Once soybean planting is complete, they will have a better handle on when the safrinha corn will be planted. If domestic corn prices improve in November and December, which some are predicting, there would still be time to purchase the needed inputs for the safrinha corn.