Aug 03, 2023
Corn Prices in Mato Grosso Down 43% From a Year Earlier
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The state of Mato Grosso is the largest corn producing state in Brazil responsible for approximately half of the safrinha corn production in Brazil. The yields of the 2022/23 safrinha corn in the state were very good, but farmers have been disappointed with the recent decline in corn prices.
According to the Mato Grosso Institute of Agricultural Economics (Imea), during the week of July 28, the average corn price in the state was R$ 33.23 per sack (approximately $3.14 per bushel) which was down 43% compared to the price of R$ 58.48 last July (approximately $5.53 per bushel).
The declining prices are due to a record corn production of 50 million tons and a lack of storage space. The 2022/23 safrinha corn production in the state is up 14% compared to 2021/22 and many farmers have no place to store the grain, forcing them to sell in spite of the low prices.
Farmers in Mato Grosso also produced a record 2022/23 soybean crop and they have been slow sellers of their soybeans, also due to low prices. As a result, as much as 35% of the 2022/23 soybean crop is still occupying the limited storage space in the state.
Many farmers in Mato Grosso have lost money on their 2022/23 safrinha corn production and if prices do not improve by the end of the year when they must decide on their next safrinha corn acreage, it is possible that the 2023/24 safrinha corn acreage in Brazil may not increase compared to 2022/23.