Brazilian soybean exports to China will fall 2% compared to previous expectations, after Chinese government officials committed to buying billions of dollars worth of US agricultural products as part of a broader trade deal, a trade lobby said on Friday -fair.
According to Brazil's vegoil industry association Abiove, the country's exports will fall to 73.5 million tonnes, down 1.5 million tonnes from previous estimates.
“In view of the expectation of facilitating the trade war between the United States and China, the export scenario foresees a drop of 2% in relation to the previously forecast volume, representing a projection of 73.5 million tons,” stated Abiove.
The drop comes as the agency said Brazil would produce its biggest harvest ever, at 123.7 million tonnes, and would see a record number of grains in the press at 43.4 million tonnes, with high demand for biodiesel.
As big as it sounds, Abiove's estimate for the harvest falls more than 1 million tons below USDA's 125 million ton guess.
As a result, meal production will reach 33.9 million tons.
Source: Agricensus
