Monday, May 20, 2013

Mato Grosso corn and railroads

A few news items in the news today.

Brazil government plans to buy 8 million tons of
2nd crop corn to help prop up prices and help
with logistics to get Mato Grosso corn to the
Northeast and to the ports.

Spot Mato Grosso corn is at US$ 2.72/ bushel locally(Sorriso.)

Govt will come in at R$ 15/sac which is about US$ 3.40/bushel.

This will help buffer the surge.

Also this week progress on East/West railroad details.
After 3 years of dilly dallying, it will become official that
Lucas do Rio Verde will be the site of a dry port and
railway depot. Various public announcements are being
scheduled from Brasilia to Cuiaba to Lucas.

Lots of pats on the back and congrats will be handed
out again. Just like three years ago!!!!!!!!!
I was there......
I have heard and seen all this before.

Let us hope during the upcoming dry season BR 163
can get 90% paved to Santarem and maybe in 2014
we can break ground on the railroad.
The new forecast for a functioning railroad is now
2017/2018 crop year. I can hardly wait.