Risk of frost generates concern for corn producers in Mato Grosso do Sul

According to data from the Siga-MS project, carried out by the Association of Soy Producers of Mato Grosso do Sul (Aprosoja/MS), the harvest of corn second harvest 2023/24 totaled 15,3% of the total area until June 28th. The South Region is more advanced, with an average of 17,2% of the harvested area. In the North Region, the average is 16,3%, while in the Central Region it is 8,6%. The area harvested to date is approximately 339 thousand hectares throughout the State.

The current harvest is estimated to be 5,8% smaller compared to the previous cycle, reaching an area of ​​2,2 million hectares. Production is estimated at 11,4 million tons, a drop of 19,2%, and productivity is forecast at 86,3 bags per hectare, a drop of 14,2%.

Weather forecast

The cold front that passed through Mato Grosso do Sul caused a significant drop in temperatures, in addition to a momentary improvement in relative humidity levels. Some regions of the State still recorded light rain and drizzle. However, the forecast for the week indicates continued dry weather, with sunshine and varying cloud cover due to the action of a mass of cold, dry air, driven by a high atmospheric pressure system.

Between the 1st and 11th of July, rainfall of up to 10mm is forecast, mainly in the east and southeast regions of the state.

Meteorological experts are predicting the occurrence of frost in the State between the 10th and 15th of July. Given this forecast, some areas of Mato Grosso do Sul are highly susceptible to damage caused by frost, which could result in significant reductions in production potential.  

Economic data

The average price of a 60 kg bag of soybeans, in MS, increased by 4,3% between June 24th and July 06st and was quoted at an average nominal value of R$1 on July 7st. On the Stock Exchange in Chicago/USA there was a devaluation of all contracts between the closing dates of 126,7/1 to 24/06.

The price of a bag of corn, in MS, increased by 0,2% between 24/06 and 01/07, and was traded at an average value of R$ 47,75, on the 1st of this month. 

Corn prices on the Chicago/USA stock exchange depreciated in all corn contracts in the period from 24/06 to 29/06/2024