Chinese prefer Brazilian soybeans

Although Argentina’s peso has fallen about 21% against the dollar in recent days, making soybeans more competitively priced, Chinese buyers still prefer Brazilian grain because of its better quality.

That’s because China, the world’s largest soybean buyer, processes more than 80% of imported grain into soybean meal, which is mainly used to make animal feed. Soy content is therefore a vital parameter in the purchase of grains.

While Argentine soy protein is 35%, Brazilian soy protein is 37%. According to Chinese crushers, they can start buying more Argentine soybeans only if the price is at least 40 cents a bu lower than Brazil’s.

With the trade war between the United States and China, Brazil and Argentina became major suppliers of soybeans to the Asian country.

Russian Soy

Another soy supplier to China is Russia. That’s because crushing industries operating in China expect to see significant volumes of Russian soybeans after the Asian General Administration of Customs approved the importation of grain from all regions of Russia last week.

Still, despite increasing, the volumes sold by the Russians to the Chinese are small compared to those sent by Brazil and the United States themselves.

Russia, which is already the world’s largest wheat exporter, plans to invest billions of dollars in grain infrastructure and logistics with the goal of raising its cereal and other grain exports to at least 55.9m tons by 2035.

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