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April 10, 2014

Mato Grosso Farmers have Sold 75% of their Soy, 12% of Corn

The harvest of the 2013/14 soybean crop in Mato Grosso is approaching completion (98%) and farmers in the state have now sold approximately 75% of their anticipated production. According to the Mato Grosso Institute of Agricultural Economics (Imea), they started out selling their crop at a slower pace than last year, but sales have accelerated in recent weeks as soybean prices have improved. Even though the initial sales were slower, they have now caught up to last year's pace. The total amount of soybeans sold thus far is greater than last year reflecting the increase in production.

Domestic soybean prices in Mato Grosso have been accompanying the rising international price and the average soybean price in the state last week increased 2.8%. In the city of Sinop in northern Mato Grosso, the average soybean price last week was R$ 53.50 per sack (US$ 11.05 per bushel). In Nova Mutum in central Mato Grosso and Campo Verde in southern Mato Grosso soybeans sold last week for R$ 53.00 and R$ 56.50 per sack respectively (US$ 10.95 and US$ 11.67 per bushel).

The corn producers in Mato Grosso have been slow sellers of their anticipated 2013/14 corn production. Farmers have sold approximately 12% of their anticipated production at an average price of R$ 14.50 per sack (approximately US$ 3.00 a bushel). Low corn prices in late 2013 and early 2014 slowed initial sales by four months compared to last year when corn prices were much higher. Farmers in the state are anticipating improved corn prices due to lower production in the state and reduced corn acreage in the United States.

Imea recently reduced their estimate of the safrinha corn crop in the state to 15.3 million tons, which is 1.8 million tons less than their last estimate and 24% less than last year (22.5 million tons). Wet weather delayed the planting of the corn and the last corn was planted about two weeks later than last year. They are now estimating that the safrinha corn acreage in the state will be 2.97 million hectares, which is 8% less than their last estimate and about 12% less than last year. They are estimating an average yield of 85.4 sacks per hectare (5,124 kg/ha or 79 bu/ac), which would be 16 sacks per hectare (960 kg/ha or 15 bu/ac) less than last year.