Soybean futures dip as Brazilian real slides following Lula election win

Soybean futures prices on the Chicago Board of Trade fell in Asian trading Oct. 26 after Brazil’s real weakened sharply against the US dollar following President Luiz Inácio Lula da Silva’s election victory, boosting expectations for stronger Brazilian soybean export competitiveness.

The front-month soybean contract on CBOT traded at $12.535/bushel at 4:46 am CDT (0946 GMT), down 1.2% from the previous settlement.

The Brazilian real was trading at 18 cents on the Chicago Mercantile Exchange as of 4:47 am CDT, down 10.3% from the last settlement of 20 cents on Oct. 23.

“A depreciation in the Brazilian currency means greater returns on exports from Brazil, including soybeans,” a trader with a US-based multinational agricultural trading firm said.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →