Farmers Celebrate Soy Price Surge
Brazilian farmers miss out as they had committed to selling crops at much lower prices
U.S. farmers sold freshly harvested soybeans directly off their combines for a profit as prices rose to a four-year high this autumn, a welcome change from the losses suffered during the U.S.-China trade war, Reuters reports.
Strong exports to China as the world's top soybean importer emerged from lockdown helped push the most-active soybean futures contract at the Chicago Board of Trade Sv1 up 12.3% between Aug. 1 and mid-September, when harvest kicked into gear across the U.S. Midwest.
But the unusual surge came too late for many Brazilian farmers, on the opposite southern hemisphere growing cycle, who had already committed to selling their crops at much lower prices and may now seek to renegotiate contracts with buyers.
Brazil ran out of the oilseed earlier than usual this year. It has sold so much to China that in recent weeks local companies had to import soybeans.