The U.S. and Brazil are the two biggest exporters of soybeans in the world. For many years, both countries exported a comparable amount of beans to China. That gap has now widened in Brazil’s favor. According to NDSU Crop Economist Frayne Olson, the issue extends beyond policy or trade relations. “Brazil has had really good weather and with that increase in acreage, their yields have been relatively good. The supply of soybean volume coming out of Brazil is increasing and so the Brazilian farmer is more dependent upon the global market to get rid of a very large crop.” Chinese soybean demand has plateaued, which amplifies the loss of exports. Olson said it is too early to determine how this trade competition will play out, but Brazil has the advantage right now.
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