Brazilian truckers started protesting early Monday in Santos, the largest port in the South American nation, in a transfer that supported soybean prices.
The truck drivers had been protesting a state tax on gas and diesel, following various media studies. About two weeks ago, the federal government proposed a bill that might result in effect lower costs at the pump.
President Jair Bolsonaro stated in a tweet on February 2 that gas and diesel prices haven’t come down despite dropping at refineries due to a 30% state tax that’s adjusted only once every two weeks. That harms shoppers, he stated.
While there have been no reports of delays to purchases of products along with soybeans from Santos, the market is cautious as Brazil is now the world’s largest exporter of the oilseeds.
Brazil is anticipated to export 77 million metric tons of soybeans in the 2019-2020 marketing year, based on the USDA.
That’s approximately half the global total of exports and far outpaces U.S. shipments, which might be pegged at around 50 million metric tons.
Analysts predict crush at 173.8 million bushels, down from 174.8 million in January and 171.6 million during the same month in 2019, while oil stockpiles are projected at 1.782 billion pounds, up 25 million kilos from December and 1.549 billion pounds last January, based on research Allendale.