Brazil's States Need Money, Go After Soybeans

[marketeye]

With the Brazilian economy struggling, states are turning towards soybeans and other commodities to gain revenue. Net net, this move could boost U.S. soybean exports. Luis Vieira, Agriculture.com contributor from Porto Allegre, Brazil is on the ground and files this report:

Full story:  Brazil Tax Could Favor U.S. Soybean Exports

What say you?

Mike

[luisvieira]

One important thing to note is that Mato Grosso do Sul has a lot more land available than Rio Grande do Sul or Goiás, but the export tax went just for soybeans. So in the case of corn (without an export tax), Mato Grosso do Sul is the third producing state nationwide, only behind Paraná and Mato Grosso. But in the case of soybeans (taxed), it is the fifth producing state behind Mato Grosso, Paraná, Rio Grande do Sul, and Goiás, even having more surface (with the exception of Mato Grosso). So you can guess what is likely to happen with Goiás in the coming crops. No surface expansion for both crops.

[giolucas]

Mike,

If my old brain still remembers, you asked us to give you some thoughts about a trip to Brazil and you asked for suggestions. Did anything come of that or is it in the works??

[marketeye]

giolucas,

Yes, I was serious about the Brazilian trip. And it is in the works. I'll try to find out the latest with our trip organizer and pass along the details. So, you are interested in going? Who else is in?

Thanks,

Mike

[giolucas]

Mike,

Sorry for the late response, just saw this.  I would be interested and of course all the ducks have to be in a row, meaning when and for how long?