UPDATE 1-Dry weather, firm prices induce early Brazil winter corn harvest -tour

jueves 19 de mayo de 2016 10:48 GYT
 

(Adds quotes, details from visits during tour)

By Roberto Samora

IPIRANGA DO NORTE, Brazil May 19 (Reuters) - Producers in isolated parts of Brazil's main grain state of Mato Grosso started harvesting the winter corn crop earlier than expected to take advantage of near record prices, as the drought that has curtailed yields also accelerated the crop's maturation.

Reports of winter corn harvesting are still isolated in the center-west state of Mato Grosso, according to agronomists on the Rally da Safra crop tour in which Reuters is embedded on Thursday.

Farmers are already running harvesters through their fields even though moisture levels in the second corn crop are not yet ideal, in order to capture strong demand from the local animal feeds industry in the region.

Corn currently being harvested in the region is registering moisture levels above 14 percent, which is the standard for buyers to accept delivery without price discounts.

Spot corn prices in the region are so attractive that, if producers do not own drying equipment on site, they are paying 2 reais to 3 reais per 60-kg bag for the service, in order to sell as much of their crop before harvest gets into full swing and drives down prices.

The price of corn in Brazil more than compensates the producer for early harvest. A 60-kg bag of corn is quoted at 40 reais ($11.11) in the state, up from 15 reais a year ago, according to Mato Grosso's farm economics institute Imea.

"At this price, (the producer) is motivated. The price covers the drying costs," agronomist Fabio Carneiro at analyst Agroconsult that is hosting the Rally da Safra crop tour that passed through Ipiranga do Norte and Tapurah on Wednesday in the mid-north of Mato Grosso, where 45 percent of the state's winter corn is grown.   Continuación...