According to Soybean & Corn Advisor, Inc. the soybean export delays suffered in Brazil last year may worsen in 2014 under the strain of an even bigger crop and the loss of capacity due to a fire at Port Santos. According to the U.S. Department of Agriculture (USDA) Brazil is forecasted to harvest a record 88 million tons of soybeans in 2013/14 at the same time as a fire at Part Santos on October 18th destroyed sugar warehouses and terminals. The loss of sugar facilities may mean that facilities used for grain may be used instead for sugar. By the end of February Brazil may export 1 million tons of soybeans, however problems will occur when the bumper crop begins flooding ports in March. At the time of the fire Brazil’s ports were already working at capacity meaning more congestion and delays can be expected throughout Brazil’s entire infrastructure system. If wait times for vessels to load extend to 60 or 80 days, it may result in it being cheaper to buy soybeans from the U.S.
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