Brazil replaces the US as the largest exporter of soybeans

Brazil has displaced the US as the world's largest soybean exporter, Perfil magazine reported on July 24.

Unlike the US, Brazil continues to strengthen ties with China, the world's top soybean buyer. Thus, Brazil begins to dominate the oilseed market, the newspaper writes.

The global soybean market is dominated by one major buyer: China. Over the years, Brazil has received an increasing share of this trade, which used to be called the US. Now South American exporters are even beginning to dominate during a typical seasonal lull.

Chinese buyers are actively buying Brazilian soybeans for October delivery. This is the time of year when US exports typically peak, according to people with direct knowledge of the matter. According to sources who asked not to be named, more contracts could still be awarded in the fourth quarter as these are private deals.

The sales come at a time when Brazil is harvesting a record and offering much lower prices than competing producers. They also reflect President Luiz Inácio Lula da Silva's plan to strengthen ties with China.