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Brazil’s soybean exports trend continues with China

Nov, 21, 2018 Posted by datamarnews

Week 201847

Brazil’s Agriculture Ministry believes the country’s successful streak of soybean exports to China is likely to continue, and even give way to exports of soymeal. Currently, the country is waiting for Chinese approval to export soymeal. The South American country has so far sent 80% of its soybean exports to China in 2018, moving towards a record yearly total of 83m tons.

Due to increased shipments of soybeans, Brazil’s agricultural exports reached US$8.48bn in October, up 5.7% year-on-year, while agricultural imports totaled US$1.19bn in October, up 4.6% compared to the same period last year, closing the month with a positive trade balance of US$7.29bn in the same month, up 5.9% YoY.

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URL: https://www.hellenicshippingnews.com/brazil-record-soy-exports-to-china-could-expand-further-official/

Brazil record soy exports to China could expand further -official

Brazil’s record soy exports to China could grow further, an Agriculture Ministry official told Reuters, as the Asian nation’s trade war with the United States boosts its demand for South American beans.
Odilson Ribeiro e Silva, vice minister of international affairs, traveled to China this month and said he hopes the high demand will also open the country up to Brazilian soymeal.
Brazilian exports of the oilseed soared after China slapped a 25 percent tariff on U.S. soy in July in response to Washington’s tariffs on billions of dollars worth of Chinese goods. Brazil has sent roughly 80 percent of its soybean exports to China this year, with grain trader Agribrasil forecasting it hitting a record 83 million tonnes.
“It can go up further, but we hope that it won’t be only beans, but meal as well,” Silva said in an interview.
Brazil submitted a list of soymeal producers to China for export authorization last year. It is unclear when they will respond, he said. The country currently exports little soymeal to China and few plants are licensed, he said.
Chinese approvals of genetically modified crops have slowed recently, he said, and there is no sign it will accelerate.
Some GMO products approved five years ago in Brazil have yet to be approved by China, preventing their widespread use in Brazil and the productivity gains they would bring, Silva said.
The trade mission to China and the United Arab Emirates, which concluded Nov. 8, was met with questions about whether trade could suffer under Brazil’s President-elect Jair Bolsonaro, Silva said.
Bolsonaro has criticized Chinese investment in Brazil and upset many Muslim nations with a suggested move of the country’s Israel embassy to Jerusalem, while his environmental proposals stoked fears it would hurt the perception of Brazilian products.
Agriculture Minister Blairo Maggi sought to reassure China and the UAE that farmers were major supporters of Bolsonaro, who has a respect for the law and will not do anything to hurt Brazil’s trade, Silva said.
Bolsonaro could actually expand trade by opening the economy to imports, a necessary step to getting partners to accept more Brazilian exports, Silva said.
Brazil is also aiming to expand meat shipments to China, which is currently its top export destination for beef and chicken. A Chinese delegation is scheduled to arrive in Brazil on Sunday to inspect beef, poultry and donkey processing facilities, with an eye on increasing the number of plants authorized to ship to China, Silva said.
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Soybean trade goes haywire as major exporter turns to imports

Thu, Nov 15, 2018 – 5:50 AM, Washington
THE world of soybean shipping has turned upside down thanks to the ongoing US-China trade war.
Argentina, the No. 3 global soy grower, is making major purchases of US supplies.
A weekly measure of American shipments to the Latin American nation just rose to the highest in at least 35 years, US government data showed on Tuesday.
With China shunning US supplies, the Asian country is soaking up oilseeds from everywhere else. Argentina usually processes its beans at home before sending soy meal and oil abroad.
Now, enticed by China’s voracious appetite and a changed domestic tax structure, the country is shipping more raw soy, with some analysts predicting exports could quadruple.
In order to feed its domestic soy-crushing industry, Argentina is increasingly turning to imports, especially after a drought earlier this year hurt crops.
Meanwhile, US oilseed supplies have become relatively cheap. With China out of the market, demand for American beans has turned lacklustre at a time when harvests are booming, signalling a surge in inventories. That’s good news for Argentine buyers.
In the week ended Nov 8, 249,278 tonnes of US soybeans that were earmarked for Argentina were inspected and weighed for export. That’s the highest since the US Department of Agriculture data begins in 1983.
For the 2018-2019 season, Argentina-bound soy is close to one million tonnes, compared with none for the previous year.
Such a large amount for Argentina is “surprising”, Terry Reilly, a senior commodity analyst for grain and oilseeds for Futures International in Chicago, said in an email on Tuesday. “They are taking more soybeans than previously thought.” BLOOMBERG
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