A price drop due to abundant local supplies is making Brazil an attractive origin for soybeans, with at least two vessels carrying a combined 79,150 tonnes of Brazilian product heading to the U.S. in the next few days. The movement of soybeans from Brazil’s record harvest to the U.S. could cut into the prices that U.S. farmers who have soybeans in storage bins receive for the crops they have been holding since the fall. More shipments are expected in the coming months due to the price differential between U.S. and Brazilian supplies, said Michael Cordonnier, president of consultancy Soybean and Corn Adviser. “The discount is like $2 a bushel coming out of Brazil,” Cordonnier said. “They say that is enough to pay for the transportation costs. The ports are working as fast as they can.”
Sources: Reuters/Datamar News