Brazil to export more soy to China amid trade war, Abiove says
Sao Paulo | Reuters — Brazil will export more soybeans to China and more soymeal to its main clients in Europe, the Middle East and Southeast Asia in 2025 amid the trade war between the United States and China, a director at industry group Abiove said on Thursday.
A record soy harvest of nearly 170 million metric tons in Brazil will also contribute to the boost in shipments, Daniel Amaral, director of economics and regulatory affairs at Abiove, said.
Why it matters: Past U.S. trade conflicts with China have led to American soybean farmers losing marketshare in that country.
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“Regarding the trade war, the hope is that Brazil, based on its good relationship with trading partners… and as a major food supplier, can make our agribusiness grow even more,” Amaral said.
The outcome of the trade war is difficult to measure now, he said, as “the tariff issue is fluctuating a lot.”
But Brazil, the No. 1 soy producer and exporter worldwide, should be a reliable supplier with this harvest and its growing production, the Abiove director said.
The record soybean processing and harvest in 2025 should also boost the sector’s GDP this year, he added.
Brazil is expected to increase soybean oil exports due to the Brazilian government’s decision to keep the mandatory biodiesel blend at 14 per cent, according to Amaral.
Less biodiesel in the fuel’s makeup means that Brazil will import more fossil fuels, he added, as more than 20 per cent of the total consumed in 2024 was imported.
Prices of refined oil in the domestic market, which led the government to suspend the increase in the mixture this year, are already falling, which would allow the government to again take up plans for a 15 per cent biodiesel mixture, Amaral noted.
— Reporting by Roberto Samora
Source: Farmtario.com