Mato Grosso Institute raises 2019-20 corn output forecast to 32.4 mil mt

New Delhi — Second corn production estimate for Mato Grosso, the largest grain producing state in Brazil, was raised to 32.44 million mt in 2019-20, up 0.82 million mt from the previous forecast, the Instituto Mato-Grossense de Economia Agropecuria said on Tuesday in a report.

Corn output in the state was at 32.3 million mt in 2018-19, the institute said in the report.

Increase in demand for corn in the state from ethanol manufacturers and firm prices are expected to encourage farmers to plant more corn this year.

Corn area in Mato Grosso is seen expanding to 5.1 million hectares in 2019-20 as compared to 4.9 million ha in 2018-19, the report showed.

Corn planting in the state has already begun.

As of last week, corn sowing in the state was complete in nearly 22% of the projected area for 2019-20 as against 29.8% in the previous season.

Early arrival of rains last year helped farmers to plant soybean and corn following the oilseeds harvest much earlier than the usual time.

In Brazil, the first corn crop is planted during September-December and harvested in February-May, while the second corn crop, also known as Safrinha corn, is planted after the soybean harvest in February-March.

As supply remained thin, corn prices in the state rose to Real 37.36/60 kg ($8.79/60 kg) as of last week, up 78% on the year, according to the institute.