Soybean prices have gone up following a truckers’ strike protesting a recent increase in the federal tax on diesel fuel in Brazil, according to the WSJ:
Brazil Truckers Jar Soybean Markets
Work stoppage impedes shipments to ports, fuels speculation that buyers could turn to the U.S.
U.S. soybean futures surged to a six-week high on Tuesday as truckers across Brazil’s main farming regions blocked roads to protest fuel-tax increases and low wages, impeding shipments to ports and fueling speculation the U.S. would enjoy increased overseas demand for soybeans at Brazil’s expense. Prices pulled back Wednesday as police officers cleared some roads, but analysts said the situation remained fluid as the protests spread to more states.
The effect will be felt by the farmers, further cramping Brazil’s economy.
Over in Argentina (the world’s largest exporter of soybean oil and derivatives), rather than expedite exports,
farmers defending their fields at night amid accusations that they’re hoarding crops to undermine the government.
Argentina imposes an insanely high 35 percent export tax on soy.