There is only one buyer who dominates this market - China. Brazil | Soybean | Market
According to Bloomberg News website on July 24th, there is only one buyer who dominates the world soybean market - China. For many years, Brazil has been striving for more share of soybean trade from the United States. Now, soybean traders in South America are even beginning to dominate the market during the traditional off-season.
According to insiders, Chinese buyers are rushing to purchase Brazilian soybeans that can be delivered in October, which will also be the peak of US soybean exports. According to anonymous sources, there will be more soybean transactions in the fourth quarter.
At the same time, Brazilian soybeans have achieved a bountiful harvest, with prices far lower than those of competitors. The soybean trade between Brazil and China is also a manifestation of Brazilian President Lula's pursuit of closer relations with China, and is part of Lula's plan to promote Brazil's economic growth.
According to reports, as Brazil's soybean market share continues to expand, American farmers are losing their competitive advantage in the global agricultural market. The geopolitical tension has also prompted China to seek deeper relations with Brazil and reduce its dependence on American soybeans.
Bloomberg data shows that Chinese soybean processors can profit from Brazilian soybeans through oil extraction and animal feed production, but processing American soybeans will incur losses.