The world’s soybean market is dominated by one major buyer: China. For years, Brazil has taken an increasingly bigger share of that trade away from the US.
Now, South America’s shippers are even starting to dominate during the typical season lull.
Chinese buyers are snapping up Brazilian soybeans for delivery in October, a time of year when US exports are typically at their peak, according to people familiar with the trades. More deals for the fourth quarter are still likely to be done, according to people, who asked not to be identified because the deals are private.
The sales come as Brazil is reaping a record crop and offering much lower prices than rival producers. They also reflect President Luiz Inacio Lula da Silva’s plan to seek closer ties with China as part of his growth plan for Latin America’s largest economy.
Details by: bloomberg.com