Brazil Taking U.S. Soybean Market Share in China
After four years of bumper crops, Brazil is moving to take market share in China from the U.S. during the peak time for U.S. soybean sales. Brazil has signed deals for the sale of four soybean shipments scheduled for delivery to China in November and December and is in the process of negotiating further deals thanks to the country’s high quality soybeans and competitive pricing.
Traditionally, Brazil and Argentina harvest between February and March, and are the top exporters through September, with the U.S. harvesting in August through October, dominating sales in the following months – typically selling half its yearly exports in the following quarter.
This year however, due to large harvests and high inventories, Brazil and Argentina still have 10 to 12 million tons of soybeans to sell, which they are doing so at prices that are on par with the U.S.
Analysts are already positing that this cycle could repeat itself next season too, as both South American countries are seeing near perfect weather during their planting season.
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