The USDA (United States Department of Agriculture) announced another sale of U.S. soybeans to undisclosed destinations this Thursday (13), marking the third announcement this week. The most likely destination, as is often the case, is China. The volume sold was 120,000 tons, all from the 2023/24 crop.
Although Brazilian soybeans remain cheaper than those from the U.S., China has been securing some volumes in a move that started when MP 1227 introduced potential changes to PIS/Cofins in the Brazilian market, causing market disorganization and cooling business activity. Grain trading companies were out of the market for three days, making Brazil less competitive amid significant uncertainties and legal insecurities.
From Friday (7) until now, the USDA has made four sales announcements - three of which were to China - with the total volume reaching 434,000 tons.
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