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Wednesday, October 28, 2015

Brazil vs. U.S.: Who wins the low price battle?

Brazil vs. U.S.: Who wins the low price battle?: Have your planter ready? The Brazilians do. Many of them started planting soybeans by mid-September, a time of year that promises decent rainfall in the Southern Hemisphere. This fall it's a promise overshadowed by something most North American farmers will face just six months from now: crop budget sticker shock.

Until recently Brazilian farmers were protected from the worst effects of the worldwide downturn in commodity prices. Sure, they made less money producing commodities, but the U.S. dollar's second wind (or the Brazilian real's listlessness) cushioned what was a harder blow for U.S. farmers.