South American port issues favor U.S. ag exports
South American port disruptions have foreign buyers turning to the U.S.
Jamey Kohake with Paragon Investments tells Brownfield COVID-19 has workers in Brazil and Argentina concerned.
“Unions are wanting to send their employees back home while this virus is still spreading, they don’t want everyone to get sick. So they are struggling to find labor.”
He says grain and oilseed demand is shifting towards the U.S., reflected in recent purchases by China and Mexico.
“I think we’ll continue to see these big, big popups (since) we really are the only option right now on the world market with a big (enough) supply that could get it there on time.”
Kohake says China is looking to expand its sources for oil seeds by working with Canada to supply a limited amount of canola despite a year-long trade dispute between the two countries. He does not expect that to have much if any effect on U.S. markets.