Brazil May Run Out Of Soybeans
Spencer, IA: (Jun 06, 2012) - Trade sources say Brazil may run out of soybeans to export some time this summer.
Soy exports from Brazil in the first five months of 2012 are up 37 percent, compared a year earlier. The increase in exports coincides with a drought-reduced crop that is 12 percent smaller than last year.
A combination of strong Chinese demand for soy and manipulation of the Brazilian currency to make its soy exports more attractive drove the increased sales. Exports of soybeans accounted for 9 percent of Brazil’s total exports and ranked Number Two behind iron ore.
A consultant for Celeres says Brazil probably doesn’t have more than 12 or 13 million tons of soybeans left for export, and they will likely be gone by the end of July.