In recent days, there’s been increased selling of soybeans by Brazilian farmers amid the political uncertainty and decline in the value of the Brazilian currency, the real. Prior to that, farmers had generally been holding on to their crops looking for better pricing in the market.
That said, weakness in the Brazilian currency may not necessarily be a bad thing for Deere.
Huegel said there’s actually been some “good news” from the selling because it’s brought “a lot of cash into those farmers’ pockets again.”
Brazilian farmers generally sell their crops in U.S. dollars. Brazil is expected to have a record crop of soybeans and corn this year.
The wave of…