Chinese purchases of soybeans in the U.S. are costly and widen Brazil's advantage, says consultancy

China's purchases of U.S. soybeans, announced last Friday (14), make no economic sense and cause direct harm to the Chinese government, according to the consultancy AgResource. The company's president, Dan Basse, stated that the operation is entirely political and does not reflect the real demand of the private sector. "The government, by buying U.S. soybeans, is losing about $1.10 to $1.20 per bushel," he said on Tuesday (18) in an internet broadcast. The U.S. Department of Agriculture (USDA) confirmed the sale of 792,000 tons to China, a volume that Basse estimates is equivalent to 14 to 18 ships leaving from the Gulf and the northwest Pacific, with delivery between April and May 2026. According to him, the Chinese private industry prefers South American soybeans due to cost. "If you are a private crusher, you are moving to South America," he stated. The differential reinforces this migration. On Friday, Chicago rose $0.30 per bushel, while premiums in Brazil fell between $0.15 ...