December 5, 2019
Brazil soybean exports lower because of China's low demand for livestock feed
Exports for Brazil soybeans dropped 26% on the year between January to October 2019, as demand for livestock feed has declined in China due to the African swine fever (ASF) outbreak in the country, reported Nikkei Asian Review.
Close to a third of soybean exports from Brazil is destined for China. Last year, soybean and soybean products from Brazil to China went up 34% with China looking to Brazil for soybean supplies amid the United States-China trade war.
But with the ASF outbreak cutting swine herds in China, exports of soybeans to China from Brazil has steadily fallen in March, with a 37.8% reduction reported in the July to September quarter.
Agroconsult, a Brazilian consultancy projects a 10% decrease overall for fiscal years 2019 and 2020.
The Brazil government is pushing to boost pork exports, which have increased 67.3% on the year between January to October 2019. However, pork exports to China are only 1/40 of soybean and soybean product exports.
Total Brazil exports to China could drop this year, the first time in three years.
The US has also applied trade pressures on Brazil, with US President Donald Trump announcing steel and aluminium tariffs on Brazil and Argentina on December 2, 2019 because of substantial currency devaluations.
- Nikkei Asian Review