Number of cost related problems will cause reduction of the area devoted to soybean cultivation in Brazil.

Due to the decline in commodity prices, as well as increase of transportation costs, in 2013/14 marketing year, Brazilian farmers are planning to reduce crop fields for soybean cultivation. Orientation for farmers’ future actions will be soybean prices. Currently, the May futures contracts on soybean reached the mark of $12.4 per 27.2kg on the Commodity Exchange in Chicago.

In addition, transportation costs increased from $2.5 to $3.25 per 27.2kg of soybean. According to Brazilian farmers, in case if quotes for soybean will fall below $12, then planting area for soy will be drastically lowered and given over to the cultivation of more profitable crops.