U.S. farmers confronting supply-chain bottlenecks and a surging dollar are losing their competitive edge in the global market for soybeans to their biggest rival: Brazil. In most of the years through 2020, it was about twice as expensive for China — the top importer — to ship Brazilian rather than American soybeans. But logistics issues in the U.S., upgrades to Brazil’s ports and supply infrastructure, and a strong dollar have almost eliminated that gap, USDA data show.
Bloomberg reports it now costs roughly the same for a Chinese buyer to transport a ton of soybeans from Brazil’s biggest-growing state of Mato Grosso as it does from Iowa, the No. 2 U.S. producer. Brazil is reaping the benefits of more than 290 billion reais ($56.1 billion) the federal government has invested in roads and maritime gateways since 2008.
Start a 1-month trial subscription to Pro Farmer and get more market analysis and news that isn’t available online. Sign up here.
