Brazilian Election Weighs on U.S. Soybean Futures

(NAFB.com) Brazil’s presidential election is adding pressure to U.S. soybean futures, as currency markets react to President Luiz Inácio Lula da Silva’s surprise reelection. Agri-Pulse said Brazil’s real weakened against the U.S. dollar, potentially making Brazilian soybeans more competitive in global markets and putting U.S. export demand at risk. StoneX Group Chief Commodities Economist Arlan Suderman says traders expect Brazilian farmers to sell ahead of further currency weakness, while cheaper Brazilian supplies could take business away from American exporters. A stronger dollar makes U.S. agricultural products more expensive for overseas buyers, potentially weighing on demand. However, there was some encouraging news for soybean producers. USDA reports 91 million bushels of U.S. soybeans were inspected for export shipment in the latest weekly report. Suderman says that’s the highest weekly total in two years, as China increases purchases of the American oilseed. The strong expor