Brazil is a major supplier of soybeans to China. Its farmers fear losing business if China starts buying more from the United States. However, an expert suggests the situation is more complex. Replacing a huge supplier like the US isn’t easy overnight.
China’s demand for soybeans is massive. Brazil and Argentina combined cannot meet this full demand. Furthermore, the harvest seasons are different. The US harvests in the second half of the year, while South America harvests in the first half. This timing makes the US a necessary supplier for China.
The expert advises Brazilian soy producers to remain cautious. A potential deal could slow down future purchases from Brazil. On the other hand, the US corn market looks more stable. Despite a record harvest, high demand for animal feed and biofuels like ethanol is expected to keep prices steady.