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Brazil facing potential export roadblocks for three crops

A market analyst says Brazil is facing logistical challenges to export a trio of crops and that could be good news for US farmers.

Steve Nicholson with Rabobank tells Brownfield excessive rain has delayed a record soybean crop, the second crop corn and sugar. “As we know, the challenges within in Brazil aren’t necessarily at the port level or farm level, but in between.  How do we get it from point A to B?”

He says the delay will allow more US exports onto the global market over the next several weeks. “It opens the window for US producers to have an export market to themselves because Brazil is not going to be able to ship during that time period.  It likely benefits corn more than beans.”

Nicholson says the US has the product and the capacity to move until Brazil’s record soybean crop can be exported.