Update on Brazil Crops

By Eduardo Paim:

corn:

Corn production in the 2012/2013 harvest that will be harvested in July in Mato Grosso can reach approximately 17.3 million tonnes. A new survey was done by the National Supply Company (Conab). Corn Harvested will be Approximately 11% more compared to what was harvested in the previous season (15.6 million). The area for planting corn harvest is about 3.3 million hectares (an increase of 23.4% over last year's area).

If the rains continue to fall until the end of April we will have a lot of corn here. Most producers here did not hedge the price of corn because they wanted more than $ 12.00 per bag, best price in Mato Grosso was U $ 10.50 per bag (December 2012). Today we have only $ 7.00 per bag. It would be good to have at least $ 9.00. The government in Brazil continues to buy corn at auction to replenish inventories.

soybeans:

Some small farms in northern Mato Grosso are still finishing the soybean harvest, and are having great difficulty because it's raining a lot. It is but few hectares. Overall suppy in Brazil will not be as large, the states that are producing well will balance the states that produce poorly. Overall we have about 22% to a maximum of 25% of soybeans available. It is a little work for all businesses by the end of 2013.