financetom
Business
financetom
/
Business
/
US farmers say Brazil still has edge in China's soybean market despite trade truce
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US farmers say Brazil still has edge in China's soybean market despite trade truce
May 26, 2025 6:33 AM

CHICAGO (Reuters) -A surprising tariff pause between Beijing and Washington will not help U.S. farmers gain soy sales in China without additional concessions, producers said, because top-supplier Brazil still has a competitive price advantage.

Under the truce announced on Monday, the U.S. will cut extra tariffs it imposed on Chinese imports to 30% from 145% for the next three months, while Chinese duties on U.S. imports will fall to 10% from 125%.

Soybean export premiums fell in Brazil on the de-escalation, reflecting expectations that China could buy more from the U.S.

But American farmers said the tariff pause isn't enough. Brazil, the biggest soy supplier to China, has ample supplies from a record harvest and its farmers do not face the Chinese tariff that U.S. competitors do. China, the world's largest crop importer, already sources roughly 70% of its soybean imports from Brazil.

"The tariff that remains in place for U.S. soy is far from inconsequential," said Caleb Ragland, a farmer in Magnolia, Kentucky, and president of the American Soybean Association.

"Products purchased from our competitors in Brazil and Argentina are not burdened with this extra cost."

While the U.S. in 2022/23 accounted for about 28% of China's soybean imports, it has been a critical market for U.S. farmers, representing more than half of U.S. soybean exports in the most recent marketing year.

President Donald Trump's trade war created an opportunity for Brazil. The country aims to export even more agricultural goods to China, including sorghum, pork and chicken, and seize market share, said Luis Rua, who oversees foreign trade for Brazil's Ministry of Agriculture.

"What they (China) will buy is what they barely need to get by," Dan Henebry, a corn and soy grower in Buffalo, Illinois, said. "If South America is short... they'll buy from us."

Chinese buyers have also avoided U.S. wheat and bought 400,000 to 500,000 metric tons from Australia and Canada in recent weeks, traders said.

U.S. farmers hope that China may buy American crops as part of trade negotiations with Washington. Some growers said they would make advance sales of their autumn corn and soy harvests if crop prices rise because of increased demand.

The pause is set to expire just before U.S. farmers begin harvesting soybeans and corn, an important time for exports. They planted fewer soybeans this spring than last year because the crop looked less profitable than corn.

The truce did little to address underlying issues that led to the dispute, including the U.S. trade deficit with China that has aggravated some farmers.

Beijing did not fulfill commitments to buy more U.S. agricultural products under a trade deal it struck with Trump during his first term in 2020.

"The situation was bad before we started and something needed to be done. The situation is still bad," said Ron Heck, a corn and soy farmer in Perry, Iowa.

At the time, China had slashed purchases of U.S. crops, prompting Trump's administration to pay farmers billions of dollars in aid.

"It doesn't appear that we solved anything after that turmoil," said Henebry. "We're right back at the baseball plate trying to see if we're going to hit a home run or strike out again."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Tesla to give one month driver-assist technology trial for customers
Tesla to give one month driver-assist technology trial for customers
Mar 25, 2024
March 26 (Reuters) - Tesla will give a one-month trial of its driver-assist technology Full Self-Driving (FSD) to existing and new customers in the United States, according to Tesla CEO Elon Musk and the company's website. Musk also is requiring Tesla staff to give demonstrations of FSD to new buyers and owners of serviced vehicles, according to two emails verified...
Tesla to give one month driver-assist technology trial for customers
Tesla to give one month driver-assist technology trial for customers
Mar 25, 2024
(Reuters) - Tesla will give a one-month trial of its driver-assist technology Full Self-Driving (FSD) to existing and new customers in the United States, according to Tesla CEO Elon Musk and the company's website. Musk also is requiring Tesla staff to give demonstrations of FSD to new buyers and owners of serviced vehicles, according to two emails verified by a...
Dollar eases, yen finds floor from Tokyo's jawboning
Dollar eases, yen finds floor from Tokyo's jawboning
Mar 25, 2024
SINGAPORE (Reuters) -The dollar was on the back foot on Tuesday, owing to profit taking and pressured in part by a slightly stronger yen as Japanese government officials continued their jawboning to defend the currency. Against the greenback, the New Zealand dollar rebounded from a four-month low and last rose 0.13% to $0.6011, and likewise for sterling which firmed 0.1%...
Oil trades little changed as markets weigh Russian supply cuts against weaker dollar
Oil trades little changed as markets weigh Russian supply cuts against weaker dollar
Mar 25, 2024
SINGAPORE (Reuters) -Oil was little changed on Tuesday, after rising in the previous session, as investors took a more mixed view toward the loss of Russian refinery capacity after recent Ukrainian attacks, though a slightly weaker U.S. dollar offered some support. Brent crude futures for May climbed by 7 cents to $86.82 a barrel, while U.S. West Texas Intermediate (WTI)...
Copyright 2023-2026 - www.financetom.com All Rights Reserved