U.S. soy farmers have an unexpected customer: their number one global competitor. Brazil, the world's top soy exporter, is expected to import around 1 million tons of soybeans in the coming months, according to Brazilian grain trader Agribrasil.
"The deals will be necessary to supply Brazilian soy processors in the inter-crops period as most of the beans produced in Brazil in the last season have already been sold or are booked for exports," Roberto Samora reports for Reuters.
Here's why: when China mostly stopped buying soybeans from the U.S. because of the current trade war, it began buying far more from Brazil. Brazil wants to sell as much soy as possible to China, and so is buying the cheaper U.S. soy for domestic use, Samora reports.
"The deals will be necessary to supply Brazilian soy processors in the inter-crops period as most of the beans produced in Brazil in the last season have already been sold or are booked for exports," Roberto Samora reports for Reuters.
Here's why: when China mostly stopped buying soybeans from the U.S. because of the current trade war, it began buying far more from Brazil. Brazil wants to sell as much soy as possible to China, and so is buying the cheaper U.S. soy for domestic use, Samora reports.
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