Premiums to Chicago prices commanded by Brazilian soybeans reached their highest yet on Wednesday as investors anticipated greater exports by Brazil now that China means to impose tariffs on farm imports from the United States, Reuters reports.
The news agency says premiums for Brazilian soybeans rose by 37 percent on Wednesday, the biggest rise in one day since January last year.
The report quotes the chief strategist of trading and hedging firm Agro Financeira, Rodrigo Oliveira, as saying: “This is going to be huge for Brazilian soybean prices.”
But an analyst for consulting firm IEG-FNP, Aedson Pereira, says Brazil produces insufficient soybeans to make up for the expected decline in shipments of US soybeans to China.
China buys about 75 percent of Brazilian soybean exports, and growth in domestic demand for soybeans in Brazil means Brazil is unlikely to have much extra to spare for export, Reuters quotes Mr Pereira as saying.
