Soybeans benefit from bullish South American news
A grain merchandiser says positive news out of South America is providing some badly needed support to the soybean market.
Angie Setzer with Citizen’s Grain in central Michigan tells Brownfield farmers in Argentina are upset about a recent move by their government.
“We could see some farmer hoarding. The Argentine government (has) increased export taxes, so you’re going to see the farmer kind of holding tight there.”
Broadly, the coronavirus pandemic has sunk nearly every market.
But Setzer says Brazil’s weakening economy does bode well for U.S. soybeans.
“The Brazilian real hit five, which really puts the Brazilian farmer, who had been aggressively selling beans even a week or two ago, kind of behind the eight-ball. I think you do see the Brazilian farmer also start to kind of hold a little tighter to the supply they have as a hedge against their currency risk as well.”
Soybean futures were higher on the week. And Setzer says the combination of South American supply disruptions with a weakening U.S. Dollar should spark more buying from China.