South America Sees Gains in Key Markets as U.S.-China Trade Talks Resume

China is making strategic moves by purchasing more soybeans from Argentina and may soon follow the EU and reopen its market to Brazilian chicken exports.

NASHVILLE, Tenn. (RFD-TV)—China’s top trade negotiator met with leaders from the U.S. Midwest this week, fueling speculation that farm exports could be a key component of a trade deal. But with no soybean purchases on the books yet from this year’s harvest, the markets remain on edge as talks continue.

Trade analysts anticipate President Trump will want China to commit to buying more American agricultural goods, among other items. However, the international trade heavyweight is turning to South American suppliers to replace key commodity exports from the U.S., in its ongoing fight against President Donald Trump’s controversial trade plan, which emphasizes retaliatory tariffs.

Now, U.S. crop farmers are scrambling to find new buyers while facing record harvests and low prices, and await billions in aid promised by the USDA as they try to weather skyrocketing input costs like fertilizer, ongoing labor issues, and worry over rising demand for grain storage and diesel fuel as fall harvest kicks off.

Argentina: Growing Consistency in Commodity Crops

China is turning to Argentina for soybeans, booking at least 10 cargoes after Buenos Aires scrapped grain export taxes. The move boosts Argentina’s competitiveness and deals another blow to U.S. farmers, who are already struggling with low prices and are shut out of their top market.

Corn planting is moving quickly in Argentina as farmers rush to beat incoming storms. The Buenos Aires Grains Exchange says just over six percent of the country’s projected 19 million acres of corn have already been planted. That’s part of what’s expected to be the second-largest corn crop in Argentina’s history, with just over 19 million acres planted.

Meanwhile, wheat fields are holding steady. Despite some disease caused by excess moisture, more than 97 percent of the crop remains in normal to excellent condition. Wheat harvest will begin in November.

Brazil: Poultry Sector Progress and Removing Soybean Moratorium

Meanwhile, China has begun auditing Brazil’s sanitary controls in the poultry sector, seen as a key step toward lifting its own ban on Brazilian poultry imports. This comes as the European Union reopened its market to Brazilian chicken, lifting a ban imposed after a bird flu outbreak in Brazil.

A Brazilian judge has upheld a moratorium on soybeans grown on recently deforested land in the Amazon. The ruling rejects an appeal from a major farm group seeking to overturn the injunction.

The two-decade-old pact, backed by several global traders, prohibits companies from purchasing soy linked to deforestation after 2008. Farmers argue the deal is unfair and limits their access to markets. Brazil’s environment ministry and prosecutors are defending the measure as crucial for protecting the rainforest.

Related Stories
The farm bill is still moving, but the toughest amendment fights were pushed into today’s session. ASA President Scott Metzger joins us to discuss the risks of tariff actions on soybean exports, concerns over trade policy and production costs, and the importance of Farm Bill updates.
Higher biofuel mandates boost long-term crop demand, but a tighter D4 market may pressure biofuel feedstocks and pose new soybean oil demand risks.
The Purdue student team joins us to discuss how they developed Soy-Seal, their innovative soybean-based adhesive tape, and its potential ag impact.
John Mays with Central Life Sciences joins us to discuss the importance of pest management ahead of wheat storage and how protecting grain quality can support stronger marketing opportunities.
University of Arkansas researchers are working to help farmers reduce grain waste and get more value out of their crops.
Louisiana soybean farmers are moving quickly to get this year’s crop planted during a key window for yield potential.

LATEST STORIES BY THIS AUTHOR:

The Texas Department of Agriculture confirmed a New World Screwworm case about 119 miles from the Texas border, near Zapata, Texas, and north and west of the Rio Grande Valley.
Tennessee corn and soy farmer Josh Ogle joins us to discuss rapid planting progress in the state, improving moisture conditions, and early crop development challenges in the MidSouth region.
Paul Neiffer joined us to explain how USDA’s base acre expansion will be calculated, outline key deadlines for farmers, and discuss how the changes tie into farm program decisions and the broader Farm Bill outlook.
Chad Fiechter joins us to discuss Purdue’s precision ag study, challenges in capturing value from technology, and what farmers should consider when investing in and adopting these tools.
Ethanol demand held together last week, but lower production and thinner stocks put more focus on export strength. Production capacity is also strengthening over time and benefiting soybean farmers.
Farm Bureau Economist Dr. Faith Parum discusses USDA’s efforts to expand fertilizer capacity, signals for farm profitability, and AFBF’s Farm Bill expectations.