Brazilian ag leader Glauber Silveira called to point out there are ways in which the election of Donald Trump as U.S. president might be a good thing for him and the producers he represents on Aprosoja, Brazil’s national corn and soybean association.
For one thing, soybean producers in South America generally like a U.S. dollar that gains in value between bean planting and bean harvest. “If (President-Elect Trump) manages to strengthen the dollar,” Silveira told me, “we’ll end up with a better exchange rate.”
Producers in Brazil, he added, started out concerned about a possible President Trump because of some of the more headline-grabbing things he said during the campaign. But Silveira added that no president can simply wave a magic wand and change things. “It’s all up to the Congress—even more so in the U.S. than here in Brazil.” The electoral system is designed to limit radical and sudden change.
Meanwhile, the head of Apex, Brazil’s export promotion agency, said the end of the Trans Pacific Partnership arrangement, which would lower trade barriers between the U.S. and a number of Asian countries, could be good news for Brazil's export picture.
The opinions of the author are not necessarily those of Farm Futures or Penton Agriculture.