Some estimates peg the 2018/19 crop at 123 million metric tons (MMT), but according to the chief executive at agribusiness consultancy Celeres, Brazil’s soybean crop could be as large as 130 MMT. This would be an increase of almost 10 MMT from the year prior.
High demand from China due to the dispute with the U.S. encouraged farmers in Brazil to increase soybean plantings. Recent talks between President Trump and Chinese president Xi Jinping renewed hopes that trade between both countries will resume soon.
However, trade dynamics might not go back to the way they were before the dispute. China could continue buying mainly from Brazil, while the U.S. would sell to other destinations. For now, apparent news of progress in trade negotiations have Brazilian soybean premiums trading lower.
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