NASHVILLE, Tenn. (RFD-TV News) — Brazil maintained a landed-cost advantage over U.S. soybeans into China during the second quarter, reinforcing the competitive pressure facing American growers in the world’s largest soybean import market.
USDA estimates U.S. Gulf soybean landed costs into Shanghai ranged from about $531 to $542 per metric ton. Pacific Northwest routes were lower at roughly $513 to $522, while Brazilian routes ranged from about $479 to $507 per metric ton.
Transportation costs rose for both countries. Higher truck, rail, barge and ocean freight expenses lifted U.S. costs, while Brazil also faced higher truck and ocean rates. Brazil’s lower farm-level soybean values helped offset its generally higher transportation costs.
The trade gap was also wide. U.S. soybean exports to China totaled about 111 million bushels during the second quarter, while Brazil shipped roughly 1.19 billion bushels over the same period.
USDA projects stronger U.S. soybean exports in the current marketing year, but delivered-cost competitiveness will remain important as both countries compete for Chinese demand.
