Are switching from sugar to soybean production.
Low sugar prices and highest ever soy prices are encouraging Brazil farmers to tear up cane fields and plant more soys.
Lopes planted soybeans across his 1,600-hectare farm in Sao Paulo state – a bet that paid off earlier this month when Chinese buyers loaded up on South American soy after Beijing imposed tariffs on U.S. beans. The farmer got his highest price ever for soybeans.
“It was unusual for this time of year,” Lopes said in an interview at his farm, where he’s prepping to plant another soy crop in September. “It’s got to be a result of Chinese demand.”
Shifting trade flows are redefining the Brazilian landscape, spurring more farmers to align their crops with Chinese appetites. The nation’s soy plantings have expanded by 2 million hectares in two years – an area the size of New Jersey – while land used for cane shrank by nearly 400,000 hectares, according to government data.
A few days ago I read an article about how much Brazil prices had risen or a tonne of beans while US prices fell.
Some people really do win in a trade war, especially if they stay out of it.