Corn planting gathers pace in Brazil's Mato Grosso; reaches 80% of projected area

New Delhi — Corn planting in Brazil's Mato Grosso accelerated last week with sowing completed in 79.6% of the projected harvest area, above the five-year average of 72.6%, the Instituto Mato-Grossense de Economia Agropecuria said.

Last year corn planting in the state stood at 86.6% as of February 21, largely due to early rains that expedited soybean harvesting and corn sowing.

Mato Grosso is the largest corn producer in Brazil and accounts for over 50% of the corn exports from the country.

Brazil has two corn crops, one planted September-December and the second in February-March.

The second corn output in the state is estimated at 32.44 million mt for 2019-20, up 0.6% from a year earlier, with the area projected at 5.1 million hectares, up 5% year on year, the institute forecast.

While the sowing is progressing at a brisk pace, farmers in Mato Grosso have already sold 64.4% of the projected second corn crop so far, compared with 46.5% at the same time last year, according to the institute.

Strong demand from the animal protein and ethanol industries have boosted corn prices in the past few months, encouraging farmers to sell their crop.

As of Friday, average weekly corn prices in the state was at Real 38.36 ($8.74)/60 kg, up 75% from a year earlier, according to the institute.

The institute also said the operating cost for production of corn is seen at Real 2,720.9/hectare for the 2020-2021 season, higher than this season crop cost of Real 2,700.67/hectare.

That would mean at an average price of Real 21.50/60 kg ($4.9/60 kg) producers in Mato Grosso would be able to cover their operating cost, the report said.