A historical decline in US soybean protein levels, combined with a withdrawn from the Trans-Pacific Partnership and more recently, a growing trading spat between the United States and China have allowed Brazil to lure chinese customers with its own higher-protein crop offering.
The PRESENTATION aims to briefly showcase the current scenario from the optics of Brazil and Argentina.
Consequences and Opportunities:
– Price increase of Brazilian soybean and eventually an expansion of soybean planting
– Extended benefit to the eastern parts of Paraguay
– Increasing appetite for Foreign Direct Investment in Farmland for both countries.
– Under this scenario while Brazil and potentially Argentina could consolidate as the Global export source for Soybeans, US and
EU could benefit from a local highly competitive soybean price to expand crushing capacity.
