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November 5, 2013

Mato Grosso Farmers Still Holding 35% of Last Year's Corn

According to the Mato Grosso Institute of Agricultural Economics (Imea), farmers in Mato Grosso have sold 65% of their 22.5 million tons of corn produced in 2012/13, which is significantly behind the 90% that was sold last year at this time. Low domestic corn prices have put farmers in a go-slow mode as far as selling is concerned. Corn prices in the state during October averaged about R$ 10.50 per sack of 60 kilograms or US$ 2.15 per bushel. In areas of the state with the greatest surplus of corn, prices were below two dollars a bushel during October.

The government has been attempting to stabilize the corn prices in the state by purchasing the corn at auctions for the guaranteed minimum price of approximately F$ 13.00 per sack or approximately US$ 2.80 per bushel. Thus far, there have been eight auctions held in the state and the government has purchased 7.3 million tons. The latest auction was held on October 25th with the government purchasing 600,000 additional tons of corn.

New governmental auctions are expected to be announced this week as the government continues its efforts to stabilize corn prices. Outside of the government purchases, there is very little corn moving in the state and some of the grain companies are not even quoting a price for corn.