As Brazilian and Argentine soybeans offer more competitive prices, U.S. share in China’s soybean imports has dropped significantly, falling to under a quarter last year compared to 51% in 2009. Traders point out that rising Chinese demand is increasingly being met by South American countries. One Singapore-based trader noted, “This year we have large soybean supply coming from Argentina which is going to heat up competition. U.S. share is already shrinking. They are going to lose more to Argentina this year.”

Political uncertainties in the U.S., particularly the upcoming presidential election, also contribute to the shift in Chinese buying patterns. Chinese traders are diversifying their sources to lower risks of supply disruptions that could result from political changes. A Shanghai-based trader remarked, “U.S. market share will continue to decline because you have the political backdrop of elections.”

To counter these challenges, U.S. growers are exploring newer markets like Southeast Asia and focusing on increased domestic demand for renewable fuels. However, Jeff O’Connor, a soybean farmer from Illinois, the top-producing state, acknowledges the difficulty in offsetting the loss of the Chinese market: “What we are losing internationally to China we cannot make up for domestically in one year’s time. We cannot replace that overnight.”

Source:

鈥淏razil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries,鈥� Trump wrote.

Brazil鈥檚 President Jair Bolsonaro, an avowed Trump fan who has sought closer U.S. ties, said in a local radio interview that he would call his U.S. counterpart, who he was confident would listen to Brazil鈥檚 concerns.

鈥淭heir economy is not comparable with ours. It鈥檚 many times bigger. I don鈥檛 see this as retaliation,鈥� Bolsonaro said to Radio Itatiaia.

鈥淚鈥檓 going to call him so that he doesn鈥檛 penalize us 鈥� Our economy basically comes from commodities, it鈥檚 what we鈥檝e got. I hope that he understands 鈥nd I鈥檓 almost certain he鈥檒l listen to us,鈥� he said.

Dante Sica, who is Argentina鈥檚 production minister, said Trump鈥檚 announcement was 鈥渦nexpected鈥� and he was seeking talks with U.S. officials. Additionally, Argentina鈥檚 Foreign Ministry said it will begin negotiations with the U.S. State Department.

Trump鈥檚 tweet also urged the Federal Reserve to lower interest rates so countries 鈥渘o longer take advantage of our strong dollar.

Source: Reuters