Brazil port logjam's bullish soybeans
Soybean prices are expected to rise due to acute port congestion in Brazil, one of the world's largest exporters, ANZ Banking Group says in a report; "the shipping backlog from Brazil leaves the market poised for a rally."
The vessel line-up to export Brazilian soybeans is now above 12 million tons, about twice the amount from a year ago. Vessel waiting times at Santos and Paranagua ports are 40 days and 60 days respectively, prompting cancellation of orders by buyers in China, the world's largest importer, traders say.
Due to change in regulations for truck drivers, queues waiting to unload soybeans in Santos were sometimes more than 20 kilometers long this month. Any labor strike or a prolonged wet season could trigger a squeeze on Brazil's soybean exports, ANZ says. Brazil's soybean output is forecast to rise 24% this year to around 82 million tons, says the IGC.
CBOT May soybeans futures settled 49 cents lower on Thursday at $14.0475 a bushel as government estimates inventories above market expectations.
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(END) Dow Jones Newswires
March 29, 2013 02:13 ET (06:13 GMT)
DJ MARKET TALK: Brazil's Port Congestion May Push Up Soybean Prices -ANZ->copyright