Brazil soybean trading at a premium

Brazilian soybean prices increased greatly as China announced a tariff on U.S. soybeans. Brazilian soybeans are trading at a $1.85 per bushel premium over Chicago and will remain more expensive if China goes through with the tariff.  If a tariff is imposed traders will set Brazilian prices at a slight discount of U.S. soybeans plus the 25 percent import tariff. A tariff will most likely result in more expensive soybeans for China even if they source them from South America.

Brazil soybean exports

 Source: MDIC
Posted by: Information Services
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One Comment

  1. Farmer April 12, 2018 at 11:16 am - Reply

    Go Brasil !!

    The price is too cheap still in Chicago. USDA says cost of production 4 years ago was $10.50 USD.

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