A potential tax policy change in Brazil could make Brazilian soybeans less competitive compared to U.S. beans.
The new measure limits the ability of Brazilian exporters and processors to monetize tax credits. The policy is likely to result in higher prices for Brazilian soy.
Analysts suggest this could lead to increased demand for U.S. soybeans between August and September, boosting our exports. The tax change has been met with opposition from Brazilian agribusiness groups and faces uncertainty in Congress.
