Brazilian soy more expensive in the background of increasing tensions between the US and China

From the next stage in the escalation of tension in relations between the US and China again, as a year ago, will benefit Brazil, which increases the export of soybean in China and boosts prices.

during the last weeks the price of Brazilian soybeans for delivery to China rose from 380 to $400/MT C&F, or until 372,5 $/t FOB while the U.S. remains at 340 $/t FOB US Gulf.

Prices are rising on expectations of increase in Chinese buyers of Brazilian soybeans after China announced the waiver of import of American agricultural products in response to the introduction of trump the 10% duty on Chinese goods. Now, Chinese buyers refused to import goods from the United States.

In the main state producer of soybeans Mato Grosso, the soy prices on Tuesday rose by 0.81% to 15.67 $ 62,31 or BRL per bag, which is the highest level since June 18.

However, in China, due to the spread of ASF, the demand for soybean meal is minimal and continues to decline as the forecasts are very pessimistic. Since August of last year, in a country that is the world's largest consumer of pork, recorded 140 outbreaks of ASF.

According to the forecast of the USDA, China in 2018/19 Mr will reduce soybean imports to 85 million tonnes, compared to 94.1 million tonnes in 2017/18 MG.

But according to the General administration of customs of China, in July imports of soybeans into the country rose to the highest since August last year level of 8.64 million t that on 33% more than in June and 8% July 2018. Due to this, stocks of soybeans rose to 5-month high. In storage in the East of the country remains more than 7 million tonnes of soybeans, which is the highest figure since the beginning of the year.