After a release of Brazil’s National Supply Company (Conab) informing that the country will have a domestic demand for soybeans of 42.4 million tons, João Carlos Kopp, a market consultant based in Porto Alegre, said that if this figures are confirmed, Brazil just would have six million tons of the grain available to ship until December.
“The great point is that is very likely that the country exports close to 40 million tons, and the domestic demand would have to diminish. If not, we would have to import soybeans from September. However, we have a clear situation of fragile of supply and demand. This means less supply, and more demand, which equals to higher prices”, explained Kopp.
The market analyst also cited that the United States all its shipping capacity used until October/November. Something that would just Argentina as a supplier. “September of this year can show us the largest empty space of imports and exports of soybeans in the history. These extraordinary facts tend to reflect on prices. The expected form of reflection is higher prices”, summarized Kopp.
(Source – http://www.blackseagrain.net/novosti/brazil-faces-the-risk-of-importing-soybeans-says-consultant)