Using their vehicles to block the roads, Brazilian truck drivers are refusing to work which is causing a global effect on the soybean markets. Due to the fuel-tax increases, the truck drivers in Brazil are protesting the fuel increase and low wages and refusing to transport the soybeans to the necessary ports for shipment. This is causing U.S. soybean futures to surge overnight.
According to AGWeb, only 33 of the 950 expected trucks carrying soybeans actually arrived on Wednesday at the Port of Paranagua. This port is responsible for about 15 percent of Brazil’s overall soy exports. To top off the protest, Brazil has experienced excessive rain, slowing down the soybean harvest.
The soybean prices went down to .115 cents at $10.0725 per bushel on Wednesday after closing up above $10.18 on Tuesday.
End of day Commodity Futures prices for Soybean Market
The demand for soybeans may increase even further as America’s soil is affected by freezing temperatures. With cold temperatures staying longer than expected, soybean land is freezing over and the ground is too hard to produce new soybean plants. If the weather doesn’t brake soon, the supply and demand will affect the U.S. soybean markets even more than the Brazilian trucker strikes.
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