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FAS says, despite tight supplies, Brazil is not likely to import U.S. soybeans

USDA’s Foreign Ag Service says it is unlikely that Brazil will import soybeans from the U.S., even though the South American country is currently facing tight supplies of the commodity.

Private analysts say Brazil sold too many soybeans for export this year, which has resulted in tight domestic supplies and record high soybean prices. Food prices are rising and the country’s pork and poultry sectors are complaining about the high cost of feed.

Attempting to relieve the situation, Brazil has temporarily removed its import tariffs on soybeans and soy products. Although buyers might look to the U.S., FAS says there are several hurdles including the fact that Brazil’s ports are not set up to import commodities as well as the high cost of moving soybeans inland to Brazil’s crushers.  Plus, several biotech traits that are approved in the U.S. have not been approved in Brazil.