China-US dispute could bring Brazil to import soybeans, says association | Economy

If Chinese demand for Brazilian soybeans rises as a result of the trade war with the United States, local processors may have to import 500,000 to 1 million tons from the United States, said Luis Barbieri at the time. an event in Sao Paulo.

China has announced tariffs of 25% on a number of US products, which are expected to come into effect on Friday (6).

Brazil, which is also one of the world's largest soybean producers, is expected to export this year a record 73.5 million tonnes, according to Agroconsult's forecasts reaffirmed on Thursday.

In June, the government estimated that Brazilian soybean exports in 2018 are expected to total 72 million tonnes.

Agroconsult stated that it would maintain its export forecasts despite concerns over freight costs in Brazil, which have increased since the government imposed minimum prices as one of the measures to end the truck drivers' strike that paralyzed highways in May.

There have been years when imports were needed to make soy processors work during the offseason, said Fábio Meneghin, a partner of Agroconsult, in the meantime. 39; event.

"Bringing soybeans from other countries is not unprecedented," he said.

Agroconsult sees Brazilian soybean production this season at 118.9 million tonnes.