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Brazil corn, soybeans reach record high prices

A grain market consultant who monitors the South American market says Brazil is seeing record high prices for soybeans, rice and corn.

Dr. Michael Cordonnier with Illinois-based Soybean & Corn Advisor tells Brownfield Brazil over exported these commodities.

“They front loaded their exports, now the supply situation is very tight is brazil for soybeans, corn and rice,” he said. “In fact, they’re already importing rice and soybeans.”

He said Brazil has had to import 600,000 tons of soybeans so far and will likely import another 300,000 before the end of the year.

Cordonnier said soybeans for December delivery are around $12 a bushel and corn is about $6 a bushel and he doesn’t see the market dropping any time soon.

“Planting is slow in Brazil,” he said. “The more the planting is delayed, the longer the harvest is delayed, the tighter the situation gets before the new crop is harvesting in early next January or February. So, the tightness could get even tighter before its all said and done.”

Cordonnier said because Brazil’s stocks are nearly gone, China will have to mainly buy soybeans and corn from the U.S. for the rest of the year. But he says China has slowed their grain purchases in the last week.