South America Calling
Alastair Stewart South America Correspondent

Monday 09/17/12

Mato Grosso Soy Cost, Price Figures

Soybean farmers in Mato Grosso are excited about the prospects for the 2012-13 season and the figures show that they have every right to be.

According to data compiled by the Mato Grosso Agricultural Economy Institute (IMEA), farm-gate prices are up 77% in terms of reais and 40% in dollars on this time one year ago, while operating costs have risen 24% in reais and actually dropped 1.7% in dollar terms.

But while fertilizer, seed and chemical costs have remained under control, other costs are rising more quickly. The surge in soybean has caused a corresponding spike in land prices, while the effect of a potential bumper crop on the state's creaking infrastructure will be significantly higher transport and storage costs, IMEA predicts.

As a result, total costs will rise 33% to R$2,170 per hectare, or by 6% to $432.98 per acre, for the upcoming harvest.

So, the general message is that margins promise to be ample, as long as it starts raining.

Posted at 5:08PM CDT 09/17/12 by Alastair Stewart
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