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 three-point plan was announced during remarks at the annual meeting of the National Association of State Departments of Agriculture.
Farmers may benefit from higher turkey prices this holiday season, but risks from HPAI and limited poult placements could further strain the supply.
Higher tariffs may shield some U.S. crops but risk retaliation, lost markets, and higher costs for growers. The WTO disputes highlight the fragile balance between trade policy, farm exports, and input supply chains.
USMEF CEO Dan Halstrom joined us on Monday’s Market Day Report for his analysis on the U.S.-Taiwan trade agreement, which includes big bucks for U.S. Beef.
Record U.S. sorghum crop faces weak demand as China slashes imports, while corn farmers warn of rising costs, shrinking margins, and global market pressures.
Dairy farmers are expected to face strong output and export gains, but lower prices and tighter margins will persist into next year.
Producers and processors should watch trade policy closely as tariff impacts ripple through seafood markets.
While symbolic, the WTO’s youth hackathon reflects growing calls for creative approaches to food trade and security, with potential implications for reducing losses, expanding biofuel markets, and stabilizing grain flows.
Ethanol producers face a widening opportunity window as aviation and marine fuel markets expand, with the potential to add billions in demand if policy and certification align.

LATEST STORIES BY THIS AUTHOR:

Leslee Oden, president of the National Turkey Federation, and Jay Jandrain, CEO of Butterball, joined us in the studio on Monday to discuss the history, significance, and expectations surrounding this year’s presidential turkey pardon.
The U.S. Department of Labor (DOL) estimates that the move will save farmers and ranchers $2.5 billion each year. The group warns that new methods for calculating the adverse-effect wage rate would result in lower pay for foreign workers.
Higher rail tariffs and tighter Canadian supplies will keep oat transportation costs firm into 2026.
These “USDA Foods” are provided to USDA’s Food and Nutrition Service (FNS) nutrition assistance programs, including food banks that operate The Emergency Food Assistance Program (TEFAP), and are a vital component of the nation’s food safety net.
Tyson’s closure reflects deep supply shortages in the U.S. cattle industry, tightening packing capacity, weakening competition, and signaling more volatility ahead for cow-calf producers and feedyards.
Gary Hall, co-founder of Hollywood Impact Studios Rehabilitation, joined the program to discuss using agriculture to provide opportunities and mentorship for at-risk youth in Southern California.