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December 3, 2020

Soybean and Corn Prices Decline in Mato Grosso, Brazil

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

After reaching record high levels, spot prices for soybeans and corn in the state of Mato Grosso have started to ease back a little.

The Mato Grosso Institute of Agricultural Economics (Imea) reported that the spot price for soybeans in the state last week declined 6.5% to R$ 161.53 per sack (approximately $13.85 per bushel) compared to the prior week at R$ 172.90 per sack (approximately $14.80 per bushel). This was the first weekly decline in soybean prices after many weeks of moving higher.

Soybean prices in the state had been supported by a firm demand from china and weather concerns in both Brazil and Argentina. There are very few soybeans available in the state and many buyers are out of the market due to the record high prices.

After a slow start to planting due to dry conditions, farmers in the state have now completed planting their 2020/21 soybean crop. The first half of the crop was planted several weeks later than normal while the second half of the crop was planted about on time.

The spot price for corn in Mato Grosso also declined last week by 1.2% to R$ 63.45 per sack (approximately $5.44 per bushel) compared to the prior week at R$ 64.36 per sack (approximately $5.52 per bushel).

Mato Grosso is Brazil's largest corn producing state and virtually all the corn is planted as the safrinha crop following soybeans. Due to the delayed start to the soybean planting, the safrinha corn is expected to be planted later than normal early next year. The ideal planting window for safrinha corn in the state closes about the third week of February, but some of the 2020/21 safrinha corn planting in the state is expected to be delayed until early March. The later the corn is planted in Mato Grosso the greater the risk that the summer rains will end before the crop can complete grain filling.