Van Ahn and Company CEO Jim Emter says there is a bottleneck in South America’s soybean exports. That’s sending buyers to the United States. “Right now, the U.S. is cheaper than Brazilian soybeans out of the United States Gulf. You look at those two variables and say wow, the U.S. soybean market has rallied this much, but yet we’re $2 cheaper per metric ton, based on values out of the Gulf. We need to keep in mind northern Brazil is dealing with heavy rains right now. Southern Brazil is where we see the big reductions in the crop. This market is stuck longing for beans in the export market and not getting them out of Brazil right now.” Emter calls the move in the soybeans cleansing and it will establish a floor under the market. “Even though it looks like we’re going to have an early harvest, there’s a bottleneck for the soybean markets.”
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