MercoPress. South Atlantic News Agency

Brazil purchasing soybeans from the United States for the domestic market

The purchase takes place in a year in which Brazil increased its export volumes by 51,4% compared to the same period in 2019

Bloomberg has reported that the United States began selling soybeans to Brazil after the Chamber of Foreign Trade (CAMEX) temporarily suspended import tariffs for corn and soybeans. This is a rare event that can be explained because Brazil has taken the lead in the production and export of the oilseed.

According to Bloomberg agency, Brazilian importers bought at least one cargo from the US during the last week.

The purchase takes place in a year in which Brazil increased its export volumes by 51,4% compared to the same period in 2019. In the domestic market, the price of the grain and its derivatives – oil and bran soybeans – showed a strong increase, with a strong impact among poultry and pork farmers.

In this scenario, the suspension of the import tariff for the purchase of soy from outside Mercosur is an attempt to stabilize the domestic price.

The cargo containing American soybeans is expected to be shipped this year at a port on the United States Gulf Coast. “We have already started to notice some movements, but the volumes will really depend on the companies interested and where they are located,” said Tarso Veloso, an analyst at consultancy AgResource, to Bloomberg.

However analysts do not expect large purchases since Brazilian ports infrastructure are prepared for loading and exports, and the reverse logic “requires a lot of time and resources”, pointed out a recent report by the US Department of Agriculture (USDA).