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According to official data and traders, the world's top soybean producer, Brazil, is delaying the harvest, prompting China to rely on rival exporting United States.
Sustained demand for U.S. soybeans is accelerating an historic draw-down of U.S. supplies of the oil-seed and could further drive up soybean prices at a time of rising food inflation as countries hoard staples during the pandemic.
Concerns over tight global soybean supplies after China dramatically increased purchases in recent months ignited a 4.5% U.S. soybean futures rally last month to a 6-1/2-year high.
Brazil usually harvests its soybeans in the first three months of the year, marking an end to the dominance of U.S. exports. However, that process has been delayed by a drought last year that slowed plantings, and rainfall at harvest time.
The country’s shipments of soybeans in January were 28 times lower than a year before at 49,500 tonnes, an amount insufficient to fill up a single vessel, Brazilian trade data showed.
In contrast, the United States, its biggest rival in global markets, inspected some 8.9 million tonnes for shipment in the month, the highest on record, according to United States Department of Agriculture (USDA) data.
Anec, a Brazilian group representing grain exporters like Cargill and Bunge, confirmed current shortages in Brazil may give competitors an edge.
“We assume this is happening,” Anec director Sergio Mendes said by telephone, adding Brazil’s low soy availability is elongating the U.S. export window.
In February Brazilian soy shipments could be as little as 6 million tonnes, down from 8.5 million tonnes initially expected, Anec has said. Find more.
Source: Online/SZK
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