A growing trade war between the United States and China is re-ordering the global grains business, reports Reuters.
China has turned to Brazil to fill the U.S. supply void due to tariffs. Brazilian soybean exports to the Asian country jumped 22% by value between January and September, compared to the same period a year ago.
Brazilian producers are not only selling more grain, their soy is fetching $2.83 more per bushel than beans from the United States, up from a premium of just $0.60 a year ago, thanks to stepped up Chinese purchases.
Prices for U.S. soybeans, meanwhile, recently sunk to decade lows that farmers say are below the cost of production.
Read the full report at Reuters.
