Could US soy industry benefit from Brazilian tax changes?

Wheat prices have slipped further, weighed down by Turkey’s import curbs, while corn and soybeans made some gains, finds the latest oilseeds and grains market report from CRM Agri. Those gains for soy and corn were supported by Brazilian tax changes, said the UK analysts and other commentators. The new measures limit the ability of Brazilian commodity exporters and processors to use tax credits, thereby hampering their competitive edge in international markets. The change in tax rules could make Brazilian corn less attractive, potentially shifting export demand back to the US. Similarly, the measures could result in a 4% reduction in prices paid to Brazil’s soybean farmers, weakening the appeal of Brazilian soybeans in favor of US beans. In a report by Reuters last week, Arlan Suderman, chief economist at StoneX, mentioned that Brazilian soybean processors and biofuel producers will incur higher tax costs and lower margins. Suderman indicated that this revenue loss is set to move ...