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February 13, 2020

Brazilian Farmers Actively Planting their 2020 Safrinha Corn

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

Brazilian farmers are planting their safrinha corn as fast as they are harvesting their first crop of soybeans. According to the Mato Grosso Institute of Agricultural Economics (Imea), farmers in Mato Grosso had planted 39% of their intended safrinha corn by late last week. This represented an advance of 17% for the week, which was a good planting week, and it was 4% ahead of the average planting pace.

Mato Grosso is the largest safrinha corn producing state in Brazil followed by the state of Parana.

Farmers in Mato Grosso are very pleased with the current corn price in the state and they are forward contacting some of their anticipated corn production for R$ 25 per sack or more (approximately $2.85 per bushel), which is record high for this time of the year. Their cost of production is also record high this year due to the weak Brazilian currency which increased the cost of imported fertilizers. Brazil imports approximately 70% of its needed fertilizers.

Corn prices are very favorable in Brazil due to tight supplies resulting from the strong demand for corn from ethanol producers, increased livestock production in southern Brazil, and continued strong Brazilian corn exports.

Farmers in the state of Parana are also planting their safrinha corn as quickly as they can harvest their first crop of soybeans. According to the Department of Rural Economics (Deral), the farmers in Parana had planted 14% of their safrinha corn as of earlier this week. The soybean harvest in the state was 10% complete earlier this week.