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June 25, 2020

Early Safrinha Corn Harvest Underway in Eastern Goias

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

In the central Brazilian state of Goias, the early safrinha corn harvest has started in the municipality of Cristalina, which is located in eastern Goias. Farmers had been waiting for the grain moisture to decline to acceptable levels, so the harvest pace will now pick up going forward.

According to the president of the Rural Syndicate of Cristalina, the summer rainy season lasted longer than normal this year and extended into the month of May, which should result in good corn yields.

The municipality of Cristalina has some of the most center pivot irrigation systems of any municipality in Brazil and approximately 30% to 40% of the safrinha corn is irrigated. Farmers are expecting irrigated corn yields in the range of 130 to 140 sacks per hectare (120 to 130 bu/ac) and dryland corn yields in the range of 100 sacks per hectare (92.4 bu/ac).

Farmers in the region have already sold approximately 60% of their anticipated 2019/20 corn production for prices above R$ 30.00 per sack (approximately $2.75 per bushel). This will guarantee good margins on their corn production and farmers are already investing their profits in their next soybean crop, which they will start planting in September.

The recent high soybean prices were very advantageous for farmers who barter some of their anticipated soybean production for the inputs needed to produce their next soybean crop. It is estimated that farmers have already purchased approximately 70% of the inputs needed to produce their 2020/21 soybean crop.

Brazilian farmers have purchased the inputs for their next crop earlier than normal this year in order to take advantage of the strong domestic soybean and corn prices due primarily to the devaluation of the Brazilian currency. They are also asking for early delivery of their inputs in the hope of avoiding any potential logistical problems that may be caused by the Covid-19 pandemic.