SAO PAULO, April 28 (Reuters) - The Brazilian unit of

U.S. grain trader Cargill expects to handle higher volumes of

grains and other products in the South American country this

year compared to 2024, Paulo Sousa, president of Cargill, said

in an interview.

The optimism expressed by Sousa reflects a record 2025

soybean harvest and beneficial weather for Brazil's second corn

crop, which accounts for about 75% of national corn output in a

given year.

Sousa said he expects the total volume originated, processed

and sold this year in Brazil to equal or exceed the marks of 51

million tons recorded in 2023. This compares to 45 million tons

in 2024, when Brazil produced a smaller soybean crop due to

drought in key growing regions.

Brazil is the world's largest producer and exporter of the

oilseed.

Cargill in 2024 had a net loss of 1.7 billion real ($298.83

million) in Brazil, mainly due to exchange rate effects,

according to company disclosures. In 2023, Cargill had a record

profit of 2.5 billion reais in Brazil.

The company, one of the world's largest grain traders and

processors, continues to invest in Brazil, which is one of the

immediate beneficiaries of a trade war between the United States

and China, the main destination for Brazil's soybeans in export

markets.

According to Sousa, the trade war may divert Chinese demand

for products produced in Brazil such as Brazilian soybeans. On

the other hand, the dispute is not favorable to the global trade

system, Sousa said.

In the short term, Sousa said the firm will focus

investments in port terminals and plans to boost biofuels

production in Brazil, referring to biodiesel and ethanol from

sugarcane and corn.

Sousa said Cargill this week hopes to be a competitive

bidder at a government auction of port terminals in Paranagua

and Porto Alegre.

($1 = 5.6888 reais)