Smithfield Foods to Import Brazil Soybeans
Jul 27, 2012
Smithfield Foods, the world's largest pork producer, said Tuesday it will import corn from Brazil. This is most likely a result of Brazil soybeans being cheaper to import by ship than to transport them by rail to the East Coast. Also, in another report, it appears the Southern Brazil crush operators may run out of beans before the season is finished.
This is due to most of the beans produced up north already being sold on the world market. With the Brazil Real depreciating against the US Dollar this year, Brazil farmers are receiving about 15% more than last year in their local currency plus the high increase in world prices have caused most Brazil farmers to sell their beans. Normally, at this time, less than 50% of the crop would be sold. The report indicates that more than 90% of Brazil beans have already been sold.
USDA predicts about 200 million bushel carryover for this year's crop, but I think it will be very hard to find any of those beans.