Brazil soybean prices fall after tariff deal with China

Brazil’s soybean export premiums fell on Monday after the United States and China mutually cut tariffs, reflecting expectations that the Asian country will be able to buy more U.S. soybeans than expected amid the trade war, analysts said. Domestic port premiums tend to rise when demand for the Brazilian-produced commodity increases, and reached about $1.40 a bushel in early April as global trade tensions escalated. However, with the 90-day tariff cut, U.S. farmers could benefit from higher Chinese demand for the oilseed. Port premiums at the Brazilian port of Paranagua fell 10% on Monday from Friday to $0.50 a bushel. Rafael Silveira, an analyst at Safras & Mercado, said the agreed tariff cuts could encourage China to seek more U.S. soybeans that are still being grown for the 2025/26 crop. Meanwhile, Brazil is already exporting its largest crop ever, about 170 million tonnes. China cannot abandon U.S. soybeans because relying solely on South American soybeans would be risky ...