Some Brazilian soybean farmers are defaulting on forward sales made months ago when prices were lower, sparking lawsuits and potentially causing financial losses for trading houses, reports BloombergQuint.
Since the first negotiations, oilseed prices have more than doubled on robust China demand, causing some farmers to regret selling so much volume.
Some trading companies have requested permission from a judge to seize the soybeans they’ve purchased from farms. And some have taken measures to discourage defaults, such as launching a tool to monitor farmers’ fulfillment of soy contracts.
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