The rising cost of transportation has paralyzed the purchase of soybeans and corn in Brazil

2018-06-25 12:13:17
Machine translation
The rising cost of transportation has paralyzed the purchase of soybeans and corn in Brazil

the Brazilian Government had increased the minimum cost of transportation after the strike carriers that may have blocked the main ports. In recent years the costs of domestic transportation of grain increased sharply because of government-imposed minimum rates for trucking.

 

the Increase in transportation costs led to the suspension of purchases by traders from local producers of corn and soybeans, which are the main export commodities of the country.

 

Brazil has already finished harvesting soybeans, and now started of the harvesting the second crop of corn.

 

Traders believe that the situation with the purchase of agricultural products will not change until the government will introduce clear requirements for domestic carriers.

 

According to the Brazilian Agency IMEA, last week was contracted, almost 32% of the second corn crop.

 

Chaos in the transport sector of Brazil on the background caused by the trade war between the US and China drop soybean quotations in Chicago cause significant damage to local agricultural producers, who, together with Brazilian traders cannot take advantage of situational advantage in the form of higher export demand for Brazilian soy.