Truck strike in Brazil impacts soy industry as more soybean products become commercial with US soy checkoff program

Feb 25, 2015

Some soy futures spiked as a result

Tuesday marked the seventh day of a strike by Brazilian truck operators over the high price of diesel fuels.

The impacts of the strike are being felt across the country and soybeans exports were in jeopardy of being held up – right in the middle of what looks like a record harvest.

"We could end up losing some of the harvest," Antonio Galvan, president of the Sinop Farmers Union in top soybean producing state of Mato Grosso, said to Reuters. "Without diesel, you can't do anything."

A representative from Parangua, another of Brazil’s main ports, said only 45 trucks made it to the port for unloading, whereas there are usually almost 900 trucks every morning.

As a result, soybean futures spiked briefly, opening at $10.18/bushel but after there were talks of Brazilian officials trying to resolve the situation with the truckers, the markets came down and ended at $10.14/bushel.

Meanwhile in North America…

33 new products were commercialized due to the soybean checkoff program in the United States.

The new soy-based products include:
•   NASCAR racing tires
•   Soy candles
•   Traffic line paint
•   Metal degreaser
•   Automotive seating for GM cars

“Some new uses, like biodiesel, are high-volume,” United Soybean Board director Dale Profit said in a release. “Other products, like carpet backing, paint and concrete-release forms, may use smaller amounts of soy, but have higher value. The market for ingredients like soy polyols keeps increasing in industries ranging from automotive to furniture manufacturers, which increases the demand for U.S. soy at home and abroad.”

Join the discussion. Does the strike in Brazil impact whether or not you’ll plant more or less soybeans this year? What’s your reaction to more products being part of the soybean checkoff in the US?

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