Brazil to profit from China, Argentina soy dispute

Brazil is ready to boost sales to China after the Asian nation blocked shipments of the commodity from Argentina earlier this month.

According to Brazilian Agriculture Minister Wagner Rossi, the country will discuss its potential for increasing soyoil shipments with China.

Brazil exported about 1.59 million tonnes of soyoil last year. China accounted for about a third of that. In 2008, Brazil exported 2.31 million tonnes, according to the Brazilian Association of Oilseed Industries.

Soy futures for July delivery climbed 1.5 cents, or 0.2%, to US$9.77 a bushel on the CBOT earlier for its fourth straight gain, the longest rally since March 22. The contract was little changed at US$9.775 at 8:38 a.m. New York time.

Argentina is the world's biggest exporter of soyoil and supplies about 80% of Chinese demand. Argentina primarily ships crude soyoil, which must be refined before human consumption, to the Asian nation.

China's Ministry of Commerce said that the Asian nation will improve management of a centralised system for importing the commodity from Argentina and that the two nations can resolve their dispute.

China stopped approving permits to import the edible oil from Argentina, traders said, adding that China acted after the Latin American nation increased anti-dumping measures against Chinese imports.