August 19, 2014

Minimum Price for Corn to be Increased in Brazil

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

The Brazilian Minister of Agriculture confirmed in meetings held recently in Nova Mutum, Mato Grosso that the minimum price set for corn in Brazil will be increased for the 2014/15 growing season. In Mato Grosso for example, the minimum price for corn is currently set at R$ 13.52 per sack of 60 kilograms (approximately US$ 2.80 per bushel) and the Minister expects that it will be increased to the range of R$ 14.50 to 14.60 per sack (approximately US$ 2.99 to 3.01 per bushel). The Minister had indicated that he wants a decision to be made as quickly as possible for the new minimum to take effect in January of 2015.

The president of the Mato Grosso Soybean and Corn Producers Association (Aprosoja-MT) has sent a letter to the Minister of Agriculture indicating that their organization feels the minimum should be set at R$ 17.84 (approximately US$ 3.68 per bushel) to insure the cost of production is covered by the minimum price. They based their minimum on studies conducted by the Mato Grosso Institute of Agricultural Economics (Imea).