It looks like Brazil is grabbing a larger portion of the world’s market for soybeans. According to recent customs data, China’s imports of soybeans from the U.S. have slid during the past several weeks. Some argue the drop is indicative of the recent slide in U.S. protein levels. Meaning it might not be “politically” driven like some may think, but rather “quality” driven, allowing Brazil to gain marketshare by offering a higher-protein crop. As you can see from the graphics below, Chinese soybean imports from the U.S. have lost a percentage of marketshare in both January and February, we expect the March numbers to look similar. In January, Brazil sold 2.07 million metric tons of beans to China, up +720% from a year ago. In February, the trend continued as Brazils exports to China were up +154%. Keep in mind, Brazil’s share of soybean exports to China grew to the largest ever on record in 2017. If the numbers continue to play out, we have to imagine Brazil will once again be expanding their share of the Chinese market. (Source: Reuters)
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