Nov 16, 2023

Farmers in Mato Grosso are Slow Sellers of Their Corn

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

The state of Mato Grosso is Brazil's largest corn producing state and farmers in the state continue to be slow sellers of their 2022/3 corn crop as well as their 2023/24 safrinha corn, which will be planted in a few months.

Farmers in Mato Grosso have sold 76.7% of their 2022/23 corn crop compared to 83.5% last year and 91.1% average. This represent an increase of 4.9% compared to the prior month. Farmers are selling their corn to empty some of their storage facilities for the impending soybean harvest which will start in early January.

Low corn prices have discouraged farmers from selling too much of their 2022/23 corn. The average selling price during October was R$ 35.94 per sack or approximately $3.26 per bushel. This was a decline of 2.7% compared to the price during September. At these levels, many farmers will lose money so they are holding back on selling their corn in the hope of improved prices.

For the 2023/24 safrinha corn that will be planted in a few months, farmers have forward contracted 13.9% of their anticipated production compared to 18.8% last year and 38.5% average. This represents an advance of 3.3% from the prior month.

Farmers are reluctant to forward contract too much of their anticipated production due to uncertainty over their 2023/24 safrinha corn production. Soybean planting in the state has been delayed due to hot and dry conditions which in turn, will delay the planting of the 2023/24 safrinha corn past the ideal planting window. Therefore, farmers will be reluctant to forward contract their safrinha corn until they are more certain about their production.