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Analyst says U.S. might gain some export sales as virus hits Brazil

A market analyst says the coronavirus outbreak in Brazil might generate some opportunities for U.S. commodity sales.

Carl Babler with Atten Babler Risk Management says, “A disruption in their economic activity and workforce activity could start allowing us to have a little more play in exports in, for instance, beans.”

Babler tells Brownfield there are still a lot of unknowns, and he says the currency relationships between the U.S. dollar and the Brazilian real still heavily favor Brazil for selling crops including soybeans, as long as Brazil has workers on the job. “Their prices are much lower, so we may have some advantages on logistics and supply availability but we don’t have any advantage on price and that’s still going to be a big problem.”

Brazil’s corn and soybean exports have been growing recently, but so have their cases of coronavirus.  The country reportedly has more than 100-thousand confirmed cases but questions about inadequate testing have experts saying the actual number much higher.  Sickness and stay-at-home orders might affect their ability to move products as Brazil is reportedly the hardest-hit country in South America.