SAO PAULO (Reuters) – The protein content in Brazilian soybeans fell for the first time in four harvests in 2018, according to preliminary government data, a development that has already cost Brazilian companies business with top buyer China.
Declining protein levels in Brazil, the world’s top soybean supplier, spells trouble for exporters who are faced with the prospect of cancellations, selling beans at a discount, or stricter contracts requiring quality assurances with buyers who want to guarantee a nutrient-rich purchase.
Protein - Content - Brazil - Crop - January
The protein content in Brazil’s 2018 soy crop harvested around January of that year slipped to an average of 36.83% from 37.14% in the previous crop according to preliminary findings, Marcelo de Oliveira, researcher at government research agency Embrapa, told Reuters. The data will be adjusted by September, when the final Embrapa soy quality report is due, he said.
Cesar Borges, board executive at food processor Caramuru Alimentos SA, said in an interview the company had to turn down a potential sale to China this week because it could not guarantee the minimum protein levels required by the Chinese importer.
China - Soybeans - Livestock - Feed - Brazil
China, which imports soybeans to use in livestock feed, has grown increasingly more reliant on Brazil for soybeans since last year, when it applied retaliatory tariffs on U.S. soybeans in response to U.S. duties on Chinese goods.
Beijing’s overall soy import needs are decreasing as an outbreak of African Swine Fever kills millions of pigs, however, meaning it can be more selective about its purchases.
China - Soybeans - No - Exporter - Argentina
China is also importing soybeans from No. 3 exporter Argentina, though in smaller amounts. Camilo Motter, a broker in Paraná state, confirmed falling protein content and Argentine competition can affect Brazilian soy premiums, the amount paid at local ports. Argentine soy protein content rose to 35.4% in 2019 from 34.6% in the previous crop, when a drought hurt the quality of...
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