Freight rates soar in Mato Grosso, Brazil with start of corn harvest

Mato Grosso is Brazil’s largest corn producing state and farmers in the state had harvested 0.49% of the safrinha corn as of late last week compared to 2.3% last year and 0.54% average. The state is expected to produce a record corn crop in 2022/23 which will put upward pressure on freight rates to move the crop to export facilities. According to the Mato Grosso Institute of Agricultural Economics (Imea), the cost to transport corn by truck during the third week of May from the city of Sorriso in central Mato Grosso to the Port of Santos in southeastern Brazil was R$ 446.57 per ton or approximately $2.45 per bushel. This was up 7% compared to a month earlier and the cost could increase even more once the harvest pace accelerates during June. These higher freight rates are squeezing profit margins for farmers especially now that corn prices have declined significantly since the start of the year. Approximately 60% of the gain in Mato Grosso moves by truck to export facilities, ...