Brazilian Farmers Continue to be Slow Sellers of Their 2022/23 Grain

According to the consulting firm Datagro, as of June 2nd, Brazilian farmers had sold 58.6% of their 2022/23 soybeans compared to 69.9% last year at this time and 75.2% average. This represents an advance of 7% from April. Domestic prices have declined significantly since the first of the year and farmers are only selling what they need to pay immediate bills.

Farmer selling is slow for corn as well. Farmers in south-central Brazil have sold 49.2% of their 2022/23 first corn crop compared to 58.6% last year at this time and 64.4% average. For the 2022/23 safrinha corn production, farmers have sold 34.3% of their anticipated production compared to 38.6% last year at this time and 51.3% average.

Spot prices for corn in Mato Grosso are currently in the range of R$ 37.00 to R$ 40.00 per sack or approximately $3.36 to $3.63 per bushel. In Parana, the spot prices for corn are in the range of R$ 45.00 to R$ 50.00 per sack or approximately $4.09 to $4.54 per bushel.

Spot prices for soybeans in Mato Grosso are currently in the range of R$ 105 to R$ 114 per sack or approximately $9.54 to $10.45 per bushel. Spot prices for soybeans in Parana are currently in the range of R$ 119 to R$ 130 per sack or approximately $10.72 to $11.80 per bushel.

At the Port of Paranagua, the soybean price late last week was R$ 135.53 per sack (approximately $12.32 per bushel) compared to R$ 196.63 per sack (approximately $17.87 per bushel) last year at this time.

For the 2023/24 soybean crop, Brazilian farmers have forward contracted 6.5% of their anticipated production compared to 11.7% last year at this time and 17.6% average. This represents an advance of 2.2% during the month of May.

Tags: farmers, safrinha corn, spot prices, first corn crop, corn, Brazil, prices, soybeans, Production