Corn harvest in Mato Grosso do Sul still slow, may conclude by end-Sept

New Delhi — The second corn crop harvest in the Brazilian state of Mato Grosso do Sul continues to be slow with operations complete on just 20.5% of the planted area as of Aug. 7, significantly behind both last year's level of 78.9% and the five-year average of 66.2%, the Associacao dos Produtores de Soja de Mato Grosso do Sul, (Aprosoja/MS), said in a report.

Mato Grosso do Sul accounted for nearly 10% of Brazil's total corn production in the 2018-19 harvest year, according to national agricultural agency Companhia Nacional de Abastecimento (Conab).

Producers are waiting to harvest the crop in a warmer period due to the presence of moisture in the field, which may result in the harvest ending only by the end of September, the Aug. 11 report said.

In addition, corn sowing and crop development in the state has been hit by unfavorable weather conditions this year.

Only 71% of the corn area in the state was planted before March 13, the optimal period for planting, the association said in the report.

Climatic risks in January also prompted producers to opt for other winter crops, it said.

The association said the declines in the planted area and crop yields have hit corn production in the state.

The second corn area in the state was revised down to 1.9 million hectares in 2019-20 from an initial estimate of 1.977 million hectares and down 12.8% from last season,

Aprosoja/MS said earlier. The second corn harvest in Mato Grosso do Sul is forecast at 8.65 million mt in 2019-20, down 28.85% year on year.

The delay in the harvest, along with strong domestic and export demand, has sent prices in the local market soaring.

The average price of corn in the state was Real 40.91/60 kg ($7.6/60 kg) so far in August, up 52% year on year.

Corn prices in the domestic market continue to rise due to the scant entry of new volumes into the domestic market, the report said.

Farmers in Mato Grosso do Sul had sold nearly 53.3% of their projected 2019-20 corn output as of Aug.10, compared with 45.0% in the same period of 2018-19,

Aprosoja/MS said Aug. 11.