Brazil farmer bankruptcy filings worry global grain traders

SAO PAULO: Brazilian grain exporters lobby Anec on Thursday warned it was concerned about a rise in farmer bankruptcy filings in the country, adding a recent increase in cases potentially compromises the execution of grain contracts.

The rise in farmer bankruptcy cases, which may affect delivery of committed grains throughout the season, may also hamper traders’ ability to complete their export programs, Anec said. Farmer groups, including Aprosoja-Mato Grosso and Aprosoja Brasil, did not have an immediate comment.

Anec represents global grain merchants, including ADM , Bunge, Cargill, Louis Dreyfus Commodities and China’s Cofco, among others.