Brazil’s record soybean crop this season will allow the country to boost exports to China while also increasing domestic soybean processing, Andre Nassar, the chief of Brazil’s oilseed lobby Abiove, told Reuters. Expectations of a rise in domestic crushing will help make up for a drop in neighboring Argentina, where a drought has greatly reduced production potential.
Nassar also said Brazilian President Luiz Inacio Lula da Silva’s upcoming trip to China may encourage Chinese investments in Brazil, referencing the ferrogrão “grain rail” project. He also expects a solution regarding the possibility of Brazilian soymeal exports to China after Lula’s visit.
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