Brazil’s Soybean Farmers Are Betting on La Nina to Boost Profits
- Growers hold forward sales betting drought may curb production
- Lack of silos may force growers to sell at the same time
A farmer operates a combine harvester on a soybean field in Ita, Sao Paulo state, Brazil.
Photographer: Patricia Monteiro/BloombergThis article is for subscribers only.
Farmers in Brazil, the world’s largest soybean exporter, are gambling on La Nina to boost profits.
Advanced sales for the next soy crop are halted as farmers await higher prices, according to Luiz Fernando Roque, an analyst at consulting firm Safras & Mercado. Growers are betting that a third consecutive year of La Nina may cause drought losses in Brazil’s far south and in Argentina, boosting futures prices, he said.