February 17, 2016

30% of Soybeans in Mato Grosso Followed by Second Crop of Corn

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

The ideal planting window for safrinha corn in Mato Grosso closes at the end of this week and according to the Mato Grosso Institute of Agricultural Economics (Imea), 26% of the anticipated corn has been planted, which is 2% ahead of last year's pace. Approximately 30% of the soybeans in the state will be followed by a second crop of corn.

The president of the local rural syndicate anticipates that the safrinha corn acreage in the municipality of Sorriso, Mato Grosso will be unchanged from last year at 420,000 hectares, but most of the corn will be planted late. Sorriso is the municipality in Brazil with the largest acreage of safrinha corn.

Farmers in northern Parana are very pleased with the high corn prices in their area. According to Jose Cicero Aderalso, vice president of the Cocamar Cooperative in the city of Maringa, corn in the area was selling for R$ 17 per sack last July. The price increased to R$ 27 per sack in December and it is now selling for R$ 32.50 per sack.

He credits the rapid increase to strong export demand for corn due to the devaluation of the Brazilian currency. In addition to exports, a small percentage of the corn that is produced in Mato Grosso is now being used to produce ethanol. There are now four ethanol mills in Brazil that use corn to produce ethanol with a total capacity of 75 million liters per year. This is a tiny fraction of the 29 billion liters of ethanol produced in Brazil using sugarcane. Corn-based ethanol represents just 0.25% of all the ethanol produced in Brazil During 2016, three new ethanol mills are scheduled to come on-line in Brazil with two of the facilities only using corn and one will be a FLEX facility that will use sugarcane and corn. All the corn-based facilities are located in the center-west region of Brazil, which encompasses the states of Mato Grosso, Mato Grosso do Sul, and Goias.

Farmers in Rio Grande do Sul have harvested 35% of their full-season corn crop and the yields have been higher than originally estimated.