Brazilian farmers race to sell new-crop soybeans as currency strengthens
Planting delays have not slowed the pace at which Brazilian farmers are selling new crop soybeans.
Dr. Michael Cordonnier, president of Soybean and Corn Advisor, says the currency in Brazil has strengthened considerably in the past two months.
“Now what that tells Brazilian farmers is sell as quick as you can because as the currency gets stronger, you get paid less. And that’s just the reversal of what’s been happening for most of this year.”
He tells Brownfield Brazilian farmers have forward contracted up to 70 percent of their soybeans.
“So they’ve already sold the majority, and they might sell the rest pretty quick. That would mean less pressure on prices when the harvest starts, and it’s going to start later than normal, in Brazil.”
Cordonnier does not expect Brazil’s soybean harvest to really get going until the first week of February, which he says allows more time for U.S. exports.