August 2, 2013
Brazil''s record soy crop maydepress US soy prices
USDA estimates show Brazil will harvest more than 3.012 billion bushels of soy this year, compared to nearly 3.015 billion bushels harvested in the US last fall, bringing Brazil''s soy harvest almoston a par with the US in total soy production.
According to David Iverson, United Soybean Board (USB) farmer-director from Astoria, S.D., this big crop could extend Brazil''s export supply and negatively impact the price US soy farmers receive this year.
"It''s going to take longer to export such a large crop, so we may see a price reduction during our harvest season, especially if Brazil and Argentina still have a supply of soy then," says Iverson.
"Even though Brazil''s success may impact our market, a lot of our customers really like the quality of US soy."
Transportation infrastructure is on US farmers'' sides, too, notes Iverson. The reliability and efficiency of the US transportation system has always been a competitive advantage for US soy farmers, despite the need for upgrades and repairs.
Brazil continues to struggle with clogged ports and roads. Soy vessels have waited as long as 39 days to load at the country''s main port of Santos, according to the Bloomberg.
Iverson, along with USB Director Bob Metz, visited Brazilian port facilities on the Amazon River earlier this year with the South Dakota Soybean Research & Promotion Council and saw those trucking and shipping bottlenecks first-hand.
"We need to maintain our transportation infrastructure and keep making improvements to our lock-and-dam system, roads and bridges, and rail system so we don''t lose that competitive edge," says Iverson. "Even with a drought affecting our yields last year, we are still able to produce more soy than Brazil, which had a bumper crop harvest."