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June 18, 2020

Farmers in Mato Grosso do Sul have Sold 42% of their Corn

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

In their weekly bulletin, the Agriculture and Livestock Federation of Mato Grosso do Sul (Famasul) reported that farmers in the state have sold 42% of their anticipated 2019/20 corn production compared to 36% sold last year at this time. Mato Grosso do Sul is Brazil's third largest safrinha corn producing state after Mato Grosso and Parana.

Famasul estimates that the safrinha corn acreage in the state declined 12.5% in 2019/20 to 1.9 million hectares. They are estimating the 2019/20 corn yield at 72 sacks per hectare (66.5 bu/ac) and the state's corn production at 8.2 million tons, which would be down 32% compared to the 12.1 million tons produced last year.

The safrinha corn acreage declined due to the delayed soybean harvest. Safrinha corn is planted after the soybeans are harvested, but this year only 71% of the corn had been planted by March 13th, which is considered the end of the ideal planting window in the state. The lower yields are being attributed to dry weather and irregular rains during April and May.

While the yields may be disappointing, the corn prices in the state are very attractive. The corn price during June has averaged R$ 36.63 per sack (approximately $3.35 per bushel), which is 35% higher than last year. The June corn price is 5.4% lower than the May price due to a stronger Brazilian currency compared to the dollar.