Brazil: Why is the market attentive to the spread of African swine fever in China?

Published 2023년 3월 20일

Tridge summary

The article discusses the current state of the agricultural market, focusing on the return of African swine fever in China, which could potentially impact Brazilian soy bean premiums. It also highlights the increase in biodiesel content in diesel in Brazil, leading to an increase in demand for soy in the domestic market. The possibility of an El Niño phenomenon in Asia is also mentioned, along with the impact of the bankruptcy of Silicon Valley Bank on the US economy and global market. Finally, the article outlines what to expect from the market in the coming week, including the Central Bank of the United States' meeting to determine interest rates and the market's interest in the advance of African swine fever in China.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The past week showed the return of African swine fever in China, the increase in the percentage of biodiesel blended into diesel and the chances of El Niño in Asia. This week, the contract expiring in March/23 ended, taking effect the contract expiring in May/23, which ended the week quoted at US$ 14.76 a bushel (-3.02%). The contract expiring in July/23, at U$ 14.61 a bushel (-2.21%). The analysis by Ruan Sene, a market analyst, says that the african swine fever epidemic in China has already begun to present the same feeling to the market as in 2021, when the Asian country had to slaughter 40% of its pig herd. At the time, the disease contributed to a significant drop in Brazilian soy premiums, and now, in 2023, this could happen again, further aggravating the current declines. The pig farming market is the world's largest demander of soybean meal, which is used to feed the herd and, a new significant slaughter, would significantly reduce the demand for Brazilian soybeans. On the ...

Source: Agrolink