South American Grains Outlook

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Renato Rasmussen, Rabobank International, Brazil, talked with CSD Editor Kurt Lawton at the recent Farm Progress Show about the South American grains outlook. Rasmussen, grain analyst for Rabobank, offered his insight on the increase in Brazilian production, as well as the transportation and logistics problems that have occurred in the past couple growing seasons. He also talked about some current projects in Brazil to help alleviate such constraints.

Rasmussen talks about the basis price for farmers in the U.S. versus the basis price for farmers in Brazil who have to travel farther distances (not to mention wait in much longer lines). One of the projects that will hopefully alleviate the bottleneck is using a different port for shipping. Rasmussen says it has the possibility of becoming one of the three biggest ports in Brazil.

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