Swine fever in China affects Brazilian soybean exports

Brazil, the world's largest exporter of soybeans, will ship less than expected after African swine fever has decimated Chinese pig herds. The demand for oilseeds used for livestock feed has been eroded.

Soybean shipments could reach 68.1 million metric tons this year, down 2.9% from March's forecast, the Brazilian processor group Abiove announced on Monday. Exports are likely to fall by 19% from the previous year, when the South American nation had a record harvest and foreign flows increased in the midst of the US trade war. and China, the main consumer of oilseeds and pork.

The shipping data from the ports indicate a lower demand for soybeans, said Daniel Furlan Amaral, economic director of Abiove in Sao Paulo, during a phone interview. "If the hope of an increase in meat imports in China is confirmed, it will be an interesting opportunity for Brazil", in terms of protein export and domestic consumption of soybean meal, did he declare.

Brazilian ports were to deliver Monday 3.81 million tons of soybean, the lowest volume for this time of year, at least since 2015, reveal the data of the category of commodities. Abiove represents Cargill Inc., Bunge Ltd. and Cofco Corp., among other exporters.

Abiove confirmed its forecast soybean meal production at 43.2 million tonnes, unchanged from the previous year. Processors have the capacity to increase production to 63 million tons.

On Monday, soybean and flour futures to be delivered in July extended the Chicago Board of Trade's record-breaking record. Agricultural markets fell after escalating trade tensions between the United States and China. On May 3, the shares of JBS SA of Brazil, the world's largest meat producer, reached a record.