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October 28, 2020

Spot Prices for Soy and Corn Continue to Set Records in Mato Grosso

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

Prices for soybeans and corn continue to set record highs in Mato Grosso, which is Brazil's largest producer of both crops. According to the Mato Grosso Institute of Agricultural Economics (Imea), the soybean spot price in the state increased 3.5% last week compared to the prior week to an average of R$ 159.88 per sack (approximately $13.45 per bushel). The lack of available supplies and concern over the delayed planting of the 2020/21 Brazilian soybean crop helped push up prices.

Imea reported that the spot price for corn in the state increased 7.7% last week compared to the prior week to R$ 60.40 per sack (approximately $5.08 per bushel), which is a new record high price. On the B3 Futures Exchange in Sao Paulo, the corn price increased 10% last week to R$ 80.92 per sack (approximately $6.80 per bushel).

In many areas of Brazil, the prices of soybeans and corn are approximately double the price of a year earlier. As a result, farmers have been aggressively forward selling their anticipated soybean and corn production. Brazilian farmers have forward contracted 55% to 60% of their anticipated 2020/21 soybean production compared to an average of about 35% for this time of the year.