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China Is Ditching Expensive Brazilian Soy for U.S. Supplies

  • Traders are washing out deals booked earlier in the year
  • Chinese buyers picked up at least 6 American cargoes Monday
Soybeans are unloaded into a truck during a harvest in Santa Cruz do Rio Pardo, Sao Paulo state, Brazil, on March 7.

Soybeans are unloaded into a truck during a harvest in Santa Cruz do Rio Pardo, Sao Paulo state, Brazil, on March 7.

Photographer: Patricia Monteiro/Bloomberg
Updated on

China, the world’s top soybean buyer, is ditching expensive Brazilian purchases and replacing previously done deals with American supplies, according to people familiar with the transactions.

Traders are washing out Brazilian purchases made earlier in the year as the price gap to American supplies widened, said the people, who asked not to be identified because the information is private. Some traders have struck the arrangements to supply their own operations in China, while others are doing them on behalf of Chinese clients, the people said.