Wednesday, May 22, 2013

Brazil gov´t buying 2 million tons of Mato Grosso corn


The logistics issue is crucial in Mato Grosso and it is time to decide for the producer to expect the government's actions to remove corn from the market - which should support the price - or negotiates part of the second season now and reduces the need for storage.

According to the Mato Grosso Institute of Agricultural Economics (IMEA), the silo bags have been an alternative for farmers who want to wait for a reaction in prices, but the output is still "emergency".
"Considering the value of the silo bag without machinery, the cost per bag of corn with such alternative is around R $ 0.40 to R $ 0.50," said the IMEA in informative.

Those who can not afford this have traded production at a value below the operating cost.

"For those who expect high productivity, the market share of production now reduces the problem of lack of storage," says the institute.

Mato Grosso began selling corn harvest 2012/13 to R $ 15.96 / bag (quotation november/12), but only 6% of the production was closed this value. In January prices fell to R$ 14.01 on average. In May, with 4.5% of businesses closed, the average was 28% lower than in November, around R $ 11.53 / bag. The government indicated it will pay for corn Mato Grosso R$ 15.12 / bag, value, according to the IMEA covers the costs of production. But the volume of 2 million tons in option contracts is considered low. "Supports only 12.5% ​​of the entire crop," he says.

Today, the marketing of Mato Grosso corn reaches 26.7% of the total production for the season 12/13, equivalent to 4.3 million tons of the16.05 million tons expected for the current cycle. The expectation by IMEA and market agents is that businesses follow retracted to a marked improvement in prices by sellers. In the state, prices range from R $ 10.90 / bag in Sorriso, R $ 11.30 / bag in Lucas do Rio Verde, R$ 14.80 / bag in Primavera do Leste and R$ 15.40 / bag in Rondonopolis. The second season has buyer R$ 14/sac Rondonopolis but seller asks R$ 16/sac. In the mid-north, a buyer's market R$ 9/sac, compared to R$ 12.50 Seller / bag.

In ParanĂ¡, poor provision of sale, and stable prices. Yesterday, the Department of Agriculture reported that the marketing of the summer harvest is only 55% of the production and the sale of second crop is stuck at 7% of the expected volume. The harvest of the second crop corn has not yet begun in the state.