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Although the Brazilian real is currently weak due to its poor economic performance, farmers in Brazil benefit from a weaker real relative to the US dollar because soybeans are priced in dollars on the world market. Good yields and high prices during the past several years have put Brazilian farmers in a strong financial position, and have encouraged an increase of Brazil’s soy area. Coupled with increases in US and South American soybean areas, and good yields in both regions, world soybean stocks are now at record large levels. In “Strong US Dollar Helps Brazil Farmers, Makes Soybean Price Outlook More Bearish,” Chris Eggerman, Vice President – Informa Economics, Inc. examines the impact these supplies will have on soybean planting in Brazil and elsewhere, and on world soy bean futures this year and into 2016.

Read the full study here.

From the April 2015 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.

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Labels: Barclay Insider Report, Barclay Insider Report Guest Article, commodities, Commodity Markets Analysis, Informa, soybean futures