Brazil: Corn Prices in Mato Grosso 61% Higher Than a Year Ago

Strong domestic demand for corn and tight supplies in the state of Mato Grosso have resulted in increasing domestic corn prices. According to the Mato Grosso Institute of Agricultural Economics (Imea), the spot price for corn last week in Mato Grosso was R$ 57.17 per sack (approximately $4.55 per bushel). This represents an increase of 61% compared to the same time in 2023.

The strong prices are due to a reduction of 5.5 million tons of corn production in 2023/24 compared to 2022/23 while at the same time, domestic demand continues to increase especially for ethanol production. Imea expects corn prices to continue strengthening due to tightening supplies until the safrinha corn crop begins to be harvested next June.

Mato Grosso is the largest safrinha corn producing state in Brazil and farmers will start planting their safrinha corn in January and February after soybeans are harvested. The soybean harvest will be very concentrated next February and farmers are already concerned about the possibility of wet weather delaying the soybean harvest and thus the safrinha corn planting.

The ideal window for safrinha corn planting in Mato Grosso closes about the third week of February. Corn planted after that date has a higher risk of dry weather returning before the crop matures.

Tags: Mato Grosso, crop, safrinha corn, demand, corn, planting, prices, Production