As is usually the case, Brazil produced a large soybean crop this year. The country has been exporting a lot of soybeans but has reached the point at which they don’t have many soybeans left to ship.
A new report says that Brazil hit a new soybean export record in September, when they shipped 4.3 million tons. A spokeswoman from AgRural Commodities in Brazil says that could mean China will come knocking on America’s door for more soybean purchases. However, Brazil still has a lot of corn to market yet. Even if Brazil should market 30 to 33 million tons of corn until January, the country would still have about 20 million tons in stocks, which would be a Brazilian record. A corn glut has been weighing on prices for years, with farmers in both Brazil and America feeling the strain.
A new ethanol plant running in Mato Grosso, Brazil, is just ramping up its production and trying to help Brazil get through a lot of that excess corn in storage. To combat some of the low corn prices, experts predict that Brazilian farmers will up their soybean acres two percent higher than they were this year.