Brazil’s Soybean Export and Prices Increase as Trade War Grows.
Soybean prices in Brazil have increased swiftly. The reason is a growing trade war between the United States and China. After new U.S. tariffs on Chinese goods, China is buying more soybeans from Brazil.
This caused Brazilian soybean prices to rise. In March, the extra cost (called “premium”) that buyers pay at Brazil’s ports jumped to 85 cents per bushel, a 70% increase in just one week and the highest price since 2022.
In January and February, 79% of Brazil’s soybean exports went to China, the number was 75% last year at the same time. These numbers show that China is turning away from U.S. soybeans.
The United States and Brazil supply over 80% of soybeans worldwide. China buys around 60% of all soybeans sold across the globe. So, any change between these countries has a big impact on the market.
In 2018, when the trade war started, China put a 25% tariff on U.S. soybeans. That year, China imported 82% soybeans from Brazil and U.S soybean export fell to 18%.
Now, with new tariffs in place, U.S. soybeans face even more taxes. Other buyers, like the European Union, are also affected. Experts say this is no longer just a U.S.-China trade war. It is a global trade war.
Because of these chaotic situations, U.S. soybean farmers could lose around $6 billion each year. Meanwhile, Brazil is gaining more profit. The country is expected to set a new record for soybean exports.
Experts believe other countries like Argentina and Paraguay could benefit too.
The Global soybean market is Changing fast, and Brazil is becoming a more crucial player in the soybean market.
