The President of Brazil, Jair Bolsonaro announced in an official statement that due to the increase in the price of soybeans in the domestic market, the Brazilian government while emphasizing the effort to not intervene in the market, will import this product from the United States.
Assessments from this country indicate that soybean prices are rising in the domestic market, and assessments conducted by the Brazilian Center for Advanced Study of Applied Economics (Cepea) indicate that the purchasing power of the country’s growers Especially in the Broiler sector has decreased.
This may have led the Ministry of Agriculture to announce that it has eliminated import tariffs on corn and soybeans until March 2021.
On the other hand, although previous assessments have shown a decline in soybean exports from the United States, its exports to the emerging Brazilian market can offset some of this decline.
Finally, the Brazilian government has not yet indicated the amount and origin of imports of soybean.