> desktop shows no
> icons and right clicking gives no menu.

The desktop icons are provided by Caja, MATE's file manager. If the desktop 
icons are not there, then Caja is probably not running. It makes sense then, 
that

> HOWEVER, if I open a folder first, and then do the same, it works and
> desktop starts working again.

Caja is also how you browse your filesystem, so opening a folder starts Caja. 
It seems that for some reason Caja is not starting in the background when you 
log in.

Run dconf-editor and go to org/mate/desktop/session/required-components and 
look at the "filemanager" field. If it is blank or says anything other than 
"caja" then set it to "caja" and log out/in. If it already says "caja" then 
we'll have to keep looking.  

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