October 22, 2020

Despite tight supplies, Brazil not likely to import US soybeans: FAS

The United States Department of Agriculture's Foreign Ag Service (FAS) says it is unlikely that Brazil will import soybeans from the US, even while the country is facing tight supplies, Brownfield Ag News reported.

Private analysts say Brazil exported too many soybeans this year, which has led to tight domestic supplies and record prices. Food prices are rising and the country's pork and poultry producers are lamenting about high feed costs.

Brazil therefore temporarily removed its import tariffs on soybean and soy products. Although buyers might look to the US, FAS says there are several obstacles including the fact that Brazil's ports are not set up to import commodities as well as the high cost of moving soybeans to crushers inland. Additionally, several biotech traits that are approved in the US have not been approved in Brazil.