Nov 04, 2010
High Prices Could Spur Increased Safrinha Corn Acres in Parana
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
While soybean planting has been slower than normal in Mato Grosso, it has been faster than normal in the state of Parana. Over the last four years, farmers in Parana have planted on average 25% of their intended soybean acres before the end of October. This year, farmers in the state had managed to plant more than 50% of their soybeans before the end of October.
The accelerated soybean planting pace in Parana has opened up the possibility of increased safrinha corn acreage in the state, which will be planted after the soybeans are harvested. Nearly all the safrinha corn in the state is planted in the northern half of the state where the soybean planting is well ahead of the normal pace.
The enthusiasm for safrinha corn is due to the domestic corn prices and the possibility that the safrinha corn acreage in Mato Grosso may decline, increasing the demand for corn produced in Parana. The strengthening corn prices came too late to influence the full season corn acreage in Parana, which is expected to decline, but they came in plenty of time to plan for the safrinha acreage. In July, the domestic price of corn in Parana was R$ 13 per sack or approximately US$ 3.47 per bushel. At the end of October, corn prices in Parana were running R$ 20 per sack or approximately US$ 5.34 per bushel. If the safrinha corn acreage in Mato Grosso does indeed decline, there is the possibility that the corn price could strengthen even further.
Conab estimated that farmers in Parana planted 1.35 million hectares of safrinha corn last year and that farmers in Mato Grosso planted 1.92 million hectares. The two states combined planted about 63% of all the 2009/10 safrinha corn acreage in Brazil. It is possible that the decline in safrinha corn acreage in Mato Grosso might be compensated for by an increase in acreage in Parana.