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Cargill said Brazil's new freight law, which sets only a minimum freight rate, is disrupting grain and oilseed trade by hindering pre-sales and shipping commitments. Congress approved the revision and it awaits President Temer's signature, while the Federal Court of Justice is still reviewing whether fixed freight rates are legal.
Higher and inflexible Brazilian freight costs raise export prices for soybeans, corn and meal, which can shift trade toward U.S. supply and weigh on Brazilian farm-gate prices.
zmp.deJul 25, 2018After 356 past bullish policy events, Soybeans moved a median +0.1% over 5 sessions (53% higher; middle half -1.2% to +2.3%), and -0.9% over 20.
After 318 past bullish policy events, Corn moved a median -0.1% over 5 sessions (48% higher; middle half -1.4% to +1.5%), and -0.2% over 20.
After 172 past bullish policy events, Soybean Meal moved a median +0.0% over 5 sessions (50% higher; middle half -1.5% to +1.7%), and -0.8% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
