Brazilian soyabean premiums have surged to a near four-year high against those of the US as the US-China trade warleads to a scramble by Chinese traders for alternative sources. Soybeans exported at the Brazilian port of Paranaguá were selling for $396.60 a tonne, $66.10 more than the commodity sold on the US southern Gulf of Mexico coast. The premium is the highest since September 2014 and comes as Chinese buyers have been cancelling their US orders as the 25 percentage point tariff increase by Beijing on US soyabean imports took effect this month.
Matthew Kruse
Brazil Soy Boom Spells Bumper Year For Agriculture Equipment
RIBEIRÃO PRETO, Brazil (Reuters) May 9th, 2018 – Agricultural equipment makers in Brazil are banking on strong sales this year, boosted by a second straight bumper soy crop and rising grain prices, which will more than offset weakness in the sugar cane sector, they said at a major trade show. Some machinery producers are forecasting sales growth as high as 8 percent in 2018 as farmers’ confidence rises and record-low interest rates encourage them to borrow and invest.
Why China Is Hungry For Brazilian Soy
Brazil’s poor infrastructure has long hurt the competitiveness of its soybean exports, but the country’s producers will benefit greatly as new rail and port projects come online in the Amazon region. Problems for its main soybean export rivals, the United States and Argentina, will strengthen Brazil’s trade relations with China this year.Brazil’s soybean exports to China will increase further because the South American country has an abundance of land suitable for producing soybeans with higher protein levels.
Protein plight: Brazil steals U.S. soybean share in China
January 25th, 2018 – CHICAGO (Reuters) – U.S. soybean growers are losing market share in the all-important China market because the race to grow higher-yielding crops has robbed their most prized nutrient: protein. Declining protein levels make soybeans less valuable to the $400 billion industry that produces feed for cattle, pigs, chickens and fish. And […]
Genesis Report: March 2017
It has been a great year from start to finish in Mato Grosso. There were a few negative harvest stories about grain trucks stuck in the mud and soybeans rotting in the pods. These made for a couple of good headlines that jolted the market, but ultimately they meant nothing. Bulls will look to point at anything at this point to try and push the market higher. Grain trucks that are stuck in a traffic jam, while foreign to us, are just a way of life in Brazil. Hiring trucks is easy. It is common that when a truck leaves the farm to take a load to town, you might not see it until the next day. Worst-case scenario, you just hire another truck. It may cost a little more but the harvest won’t stop.
Genesis Report: February 2017
I spent all of last week visiting farms in Mato Grosso where they are half way complete with the harvest. The northeast region of Brazil won’t begin harvest for at least another month. In short, the soybean yields in Mato Grosso look fantastic. I had to travel about 300 miles before I would find a soybean field that looked less than perfect. Farmers continue to make progress, finding ways to boost productivity and lower costs. In some of the “older” production areas, overall yields of 60 bushels per acre will be fairly common. One of the agronomists that was accompanying me, was downright giddy as they had 5000 acres that averaged about 75 bushels per acre…of course that 5000 acres was only 10% of their overall planted area.
Top Producer Magazine Features Matthew Kruse, CEO of Genesis Investments
Top Producer Magazine, January, 2017, Q&A with Matthew Kruse Background: Raised on a corn and soybean farm in northwest Iowa, Matthew Kruse moved to Brazil in 2004. There, he managed a 30,000-acre cotton, corn and soybean operation for 10 years. He sold the operation in 2015 and is starting the Brazil Farmland Development Fund. As […]
Agriculture is Brazil’s One Bright Spot
SO PAULO deep recession, political chaos and a Zika virus epidemic have brought Brazil low, but the country is still a world-beater in one respect: agriculture.Brazil’s crop agency, Conab, said Thursday it expects record soybean crop this year and corn crop close to record. The country’s farmers look set to produce record crops of coffee and sugar cane as well this year, while cattle ranchers and chicken and hog farmers foresee reaching new heights for exports.
Brazil Currency Surge Lends Support to Ag Futures
The Brazilian real surged to a six-month high on Friday, on the news that former president Lula de Silva was detained for questioning in a largescale corruption investigation. The strength of the real is bullish for agricultural commodities, particularly in coffee and sugar, of which Brazil is the world’s top exporter, as it means that sellers will not accept such low prices.
Brazil Turbulence Creates High Risk, High Reward Opportunities
February 1st, 2016 www.agrimoney.com Despite Brazil’s continued political and economic turmoil, export agriculture is one sector where the bright spots have not entirely sputtered out, Agri Investor heard this week at the Brazilian-American chamber of commerce. Revenues from agri goods priced in foreign currencies and production expenses denominated in reais are primed to increase margins […]