Dec 12, 2024
Improved Prices Stimulate Corn Sales in Mato Grosso, Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Farmers in Mato Grosso, Brazil have taken advantage of improved corn prices to sell more of their old crop and new crop corn. According to the Mato Grosso Institute of Agricultural Economics (Imea), farmers in the state have sold 89.7% of their 2023/24 corn production, which is up 3.9% from November and 7% more than a year ago.
Improved corn prices stimulated the increased sales. The current corn price in Mato Grosso is R$ 58.28 per sack (approximately $4.42 per bushel), which is up 15% from October.
For the 2024/25 safrinha corn crop which farmers will plant in January and February, farmers have forward contracted 23.8% of their anticipated production, which is up 3.1% from November. The selling pace for the new crop corn is up 8.1% from last year but 14.3% below the average for the last five years.
Mato Grosso is the largest corn producing state in Brazil and farmers are increasing their corn sales to take advantage of the improved price and to purchase inputs for the safrinha corn crop. Imea now estimates that farmers in the state will increase their safrinha corn acreage by 0.5% mainly due to the improved corn price.