Oilseed futures slammed by Brazil currency plunge

July soybeans are down more than 27 cents a bushel or more than 2.5 percent and July canola is down $4.50 a tonne or 0.85 percent following a currency move that makes Brazilian soybeans more competitive on the world market.
Brazil’s currency, the real, plunged six percent after reports that Brazilian President Michel Temer gave his blessing to an attempt to pay a potential witness to remain silent in the country’s biggest-ever graft probe.
Brazilian markets slumped on concerns that the investigation could derail Temer’s economic and fiscal agenda.
The lower value of the real will raise the domestic value of soybeans in Brazil and encourage farmers to increase cash sales of their record-large soy harvest.
The weaker currency also makes Brazilian soybeans less costly on the global export market than U.S. supplies.
Chicago corn and wheat were also pulled down by the weakness in the Chicago soybean contract.

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