Brazil Soy Profits Fueled by Weak Currency Deals Blow to US Farmers
- Brazilian real losses have offset decline in soybean prices
- Move has spurred farmer sales at world’s largest supplier
A farmer stands on a truck filled with soybeans during a harvest in Santa Cruz do Rio Pardo, Sao Paulo state, Brazil.
Photographer: Patricia Monteiro/BloombergThis article is for subscribers only.
A selloff in Brazil’s currency over the past month is shielding farmers in the world’s top soybean exporter from this year’s price plunge, giving them an edge over US rivals.
The real has lost 11% against the dollar this year — spurred by worries about the nation’s budget gap. That in turn brings about that much more revenue for soybeans than in 2023. The decline in the real has encouraged farmers to boost sales, deepening a rout in benchmark prices that’s eroded revenue for American peers.