US and China maintain limited impact on the soybean market

The new understanding between the world's two largest economies has reignited the debate over the direction of agricultural trade. The indication of a partial resumption of Chinese purchases brought some relief to prices, but sector analyses point out that the effect of the agreement tends to be more diplomatic than commercial, without changing the excess supply that is pressuring soybeans in the international market. Consultancies highlight that China is expected to import around 12 million tons of American soybeans in 2025, a volume well below that recorded in 2020/21. The scenario keeps the focus on South American shipments, which are considered more competitive and secure for supply. "The agreement demonstrates more of a gesture of rapprochement between the powers than an effective change in the commercial flow. China continues to prioritize South American soybeans, especially Brazilian ones, due to competitiveness and supply security issues," explains Felipe Jordy, manager of ...