If there is a trade war between China and the United States, Brazilian soybean exports may get a boost. That’s because China could be looking for potential suppliers like Brazil to replace soybeans from the U.S.
CGTN’s Paulo Cabral reports from Sao Paulo.
Brazilian soybean producers are paying close attention to a potential trade war between China and the United States, hoping this could result in gains for the South American country.
Soybean prices in Brazil have already gone up as a consequence. Chinese traders are trying to secure their soybean supplies in the event imports from the U.S. are limited.
According to the Brazilian firm Agroconsult, soy exports this year are expected to reach a record 72 million tons up from 68 million last year this, despite a drought.
China buys about 60 percent of the soy produced in the world.
In 2017, more than half of total China’s imports came from Brazil with the United States supplying about a third.
Brazil overtook the United States in 2012 as the main supplier of soy beans to China.
And producers here hope to strengthen this position even further as economic tensions between China and the U.S. increase.
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