The tariff imposed by the government of Donald Trump, in the United States, has favored the Brazilian soybean sector, according to Marcos Rubin, founder of Veeries, a brand specialized in market intelligence in the agro universe.
Guest on episode 11 of Raiz do Negócio, your road between the countryside and Faria Lima, a partnership between InfoMoney and The AgriBiz, he explained to the podcast panel that, as a result, Brazil exported gigantic volumes of soybeans to China, the largest market for the commodity in the world, occupying a share that the North Americans were unable to supply, due to less competitive prices amid tariffs.
“There is a long-standing crisis of trust between Americans and Chinese. Looking at soybeans, this is very quantifiable. Volumes plummeted in the United States and we occupied this space”, he explained.
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Main market in the world
There was a kind of “perfect marriage” in this scenario. China, the largest soybean consumer market in the world, with an extremely high demand for livestock feed, did business in significant volumes with Brazil, the largest exporter of the commodity in the world.
“In China, this demand grows every year, buying practically all the soy available on the market. We practically sent everything we had and they even compensated with Argentina, which also sent everything it had”, he said.
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Brazil x China relationship
Rubin warns that there is a desire and direction for this dependence on imports to be reduced in China, but that the road is still long. This is because a substitute is mandatory – whether in production or in supply. Which doesn’t happen overnight. “You’re not going to use soybean meal, you’re going to have to use a substitute. Wheat, corn, whatever. Ultimately, you generate derivative effects.”
Within this context, explains Rubin, as Brazil produces a lot and demand from China is gigantic, the tendency is that in the short and medium term this relationship between the two countries will remain on similar terms. Basically, a type of mutual dependence.
