Harvest of the 2nd corn crop advances in Mato Grosso

Last week, the advance of the second crop corn harvest in the state of Mato Grosso was the highlight. Despite the adverse weather conditions suffered by the crop, especially in the southern region, the harvest continues to advance in the state and should also reach other states this June. The analysis is by Malu Fernandes, from Tarken, a Brazilian agritech that offers a marketplace for grain trading.

“The peak of the harvest for Mato Grosso is scheduled for mid-July. Even so, in the business field, the market was at a standstill and remains so at the beginning of the week. We have no reported trades and the Chicago Stock Exchange (CBOT) operates with rising prices. The market reflects the uncertainties surrounding an agreement to create an export corridor in the Black Sea. The trading companies appear to have the intention of receiving the first contracts before moving forward with new large purchases”, explains Malu.

Corn Price in MT

The main values ​​quoted for a bag of corn today in the state are:

• Cáceres: R＄ 72,24
• Primavera do Leste: R＄ 71,60
• Smile: R＄69,48
• Canarana: R＄ 67,51

As already raised by IMEA last week, the deficit in storage space compared to the crop that has been harvested is worrying for the logistics of grain flow. The large volumes harvested in the coming months, without enough space to be properly stored, tend to bring internal grain prices to lower levels, due to pressure on space in warehouses, or on producers' cash flow.

“The trend in quoted prices, as the harvest progresses, is downward despite the problems caused by the drought in several regions of the state”, says the analyst.