Brazil imports soy from USA due to temporary import tariff suspension

According to Bloomberg, the US began selling soybeans to Brazil after the Chamber of Foreign Trade (CAMEX) temporarily suspended import tariffs for corn and soybeans. This is a rare event, as Brazilians lead the production and export of oilseeds. According to the agency, Brazilian importers bought at least one cargo from the Americans in the last week.

The Brazilian purchase takes place in a year in which the country increased the volume exported by 51.4% as compared to the same period in 2019.  In the domestic market, the price of the grain and its derivatives – oil and bran soybeans – showed a strong increase; this worries poultry and pig farmers. In this scenario, the suspension of the import tariff for the purchase of soy from outside Mercosur is an attempt to secure the domestic price.

The cargo containing American soybeans is expected to be shipped this year at a port on the United States Gulf Coast. “We have already started to notice some movements, but the volumes will really depend on the companies interested and where they are located,” said Tarso Veloso, an analyst at consultancy AgResource, to Bloomberg.

But analysts do not expect large purchases on the South American side, as Brazilian ports are prepared for exports and the reverse logic “requires a lot of time and resources”, pointed out a recent report by the US Department of Agriculture (USDA).

Source: Valor Econômico

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