Jul 18, 2024
Low Prices and High Costs Worry Corn Producers in Mato Grosso
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Farmers in the municipality of Ipiranga do Norte in central Mato Grosso are satisfied with their 2023/24 safrinha corn yields, but low prices and high costs have cut into their margins. The vice-president of the Rural Union of Ipiranga do Norte reported that corn yields in the municipality are in the range of 125-126 sacks per hectare (119 to 120 bu/ac), which is an acceptable yield for the region.
The safrinha corn harvest ended earlier than normal this year because the soybean growth cycle was cut short by approximately 15 days due to drought. After the soybeans were harvested and the safrinha corn was planted, the rainfall amount returned to more normal levels leading to a good growing season for the safrinha corn.
The major concern for the producers are low prices and a high cost of production due to persistent insect infestations that required numerous insecticide applications that increased their costs even higher.
Spot prices for corn in the municipality are in the range of R$ 39.00 to R$ 40.00 per sack (approximately $3.25 to $3.35 per bushel), which makes it hard to cover production costs if you have average corn yields. If the corn yields are below average, farmers will be hard pressed to cover their costs.
Farmers in Mato Grosso will be able to plant their 2024/25 safrinha corn approximately two weeks earlier than in previous years. The change is due to the Brazilian Minister of Agriculture allowing farmers to start planting their 2024/25 soybeans on September 1st, which is 15 days earlier than previous years. Farmers asked for the change to allow more time to plant a second crop of corn or cotton.
Some of the 2024/25 safrinha corn in Mato Grosso could be planted as early as late December, which should result in a high yield potential.