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BanksPhotos/iStock/Getty Images Farmers may be able to make more money by paying fine in contract and selling the same soybeans on the spot market.
Bloomberg | Feb 24, 2021
By Tatiana Freitas
Some Brazilian soybean farmers are defaulting on forward sales made months ago when prices were lower, sparking lawsuits and potentially causing financial losses for trading houses.
Farmers in the world’s largest producer and exporter of the oilseed have sold the most supply ever in advance this season, boosted by strong demand and a weak Brazilian real. By last July, 40% of the 2020-21 crop was already disposed of, compared with the five-year average of 12%. Since the first negotiations, prices more than doubled on robust China demand, causing some farmers to regret selling so much volume.
Nestlé, Unilever, McDonald s, Walmart Inc., Tesco Plc and other consumer-goods companies demanded in a letter that the traders refuse to trade soy from deforested regions
Some of the world’s largest food companies and grocers urged commodity suppliers including Archer-Daniels-Midland Co, Bunge Ltd, Cargill Inc and Louis Dreyfus Co. to stop trading soybeans associated with deforestation in Brazil’s Cerrado region, a savanna that is a hive of biodiversity and one of the country’s most important carbon sinks.
Nestlé, Unilever, McDonald s, Walmart Inc., Tesco Plc and other consumer-goods companies demanded in a letter that the traders refuse to trade soy from deforested regions of the Cerrado starting next year.