Latest news with #EllaCao
Yahoo
13-05-2025
- Business
- Yahoo
China to allow Brazil's ethanol by-product amid Lula visit, US-China trade war
By Ella Cao and Eduardo Baptista BEIJING (Reuters) - Brazil signed protocols with China on Tuesday to allow exports of an ethanol by-product used in animal feed, challenging U.S. dominance in the market amid ongoing China-U.S. trade standoff. The deal, outlined in a Brazilian government document viewed by Reuters, underscores Brazil's push to strengthen agricultural ties with China as President Luiz Inácio Lula da Silva visits the country, and as rising domestic DDG production fuels the search for alternative markets. Distillers dried grains (DDGs) are highly valued in animal feed, particularly for pigs, cattle, and poultry. In an interview with Reuters on Monday, the president of Brazil's National Corn Ethanol Union (UNEM) said Brazil and China have been working since 2022 to finalise a sanitary agreement for DDG exports, adding current "broad geopolitical shifts" present a favourable time to conclude the deal. "It opens up an opportunity for Brazil to become another supplier, another option for China to source animal nutrition products. For us, it means re-establishing and strengthening the relationship between the Brazilian and Chinese markets, which share multiple mutual interests," Guilherme Nolasco added. In 2024, the U.S. was nearly the sole supplier of DDGs to China, dominating the market with 99.6% of imports by volume, valued at $65.7 million, the Chinese customs data showed. According to Nolasco, over 10 new plants are under construction and set to begin production within the next two to three years for corn ethanol and DDG, coinciding with the opening of the Chinese market. Nolasco expects DDG production in Brazil to potentially reach up to 5 million tons in 2025/26. In April, Agriculture Minister Carlos Fávaro revealed that Brazil is nearing a deal with China to allow DDG exports. Separately, both countries also signed protocols for the export of poultry and extractive fishery products from Brazil to China, according to the document.
Yahoo
13-05-2025
- Business
- Yahoo
China to allow Brazil's ethanol by-product amid Lula visit, US-China trade war
By Ella Cao and Eduardo Baptista BEIJING (Reuters) - Brazil signed protocols with China on Tuesday to allow exports of an ethanol by-product used in animal feed, challenging U.S. dominance in the market amid ongoing China-U.S. trade standoff. The deal, outlined in a Brazilian government document viewed by Reuters, underscores Brazil's push to strengthen agricultural ties with China as President Luiz Inácio Lula da Silva visits the country, and as rising domestic DDG production fuels the search for alternative markets. Distillers dried grains (DDGs) are highly valued in animal feed, particularly for pigs, cattle, and poultry. In an interview with Reuters on Monday, the president of Brazil's National Corn Ethanol Union (UNEM) said Brazil and China have been working since 2022 to finalise a sanitary agreement for DDG exports, adding current "broad geopolitical shifts" present a favourable time to conclude the deal. "It opens up an opportunity for Brazil to become another supplier, another option for China to source animal nutrition products. For us, it means re-establishing and strengthening the relationship between the Brazilian and Chinese markets, which share multiple mutual interests," Guilherme Nolasco added. In 2024, the U.S. was nearly the sole supplier of DDGs to China, dominating the market with 99.6% of imports by volume, valued at $65.7 million, the Chinese customs data showed. According to Nolasco, over 10 new plants are under construction and set to begin production within the next two to three years for corn ethanol and DDG, coinciding with the opening of the Chinese market. Nolasco expects DDG production in Brazil to potentially reach up to 5 million tons in 2025/26. In April, Agriculture Minister Carlos Fávaro revealed that Brazil is nearing a deal with China to allow DDG exports. Separately, both countries also signed protocols for the export of poultry and extractive fishery products from Brazil to China, according to the document. Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
China's April soybean imports hit decade-low as customs delays disrupt trade
By Ella Cao and Naveen Thukral BEIJING/SINGAPORE (Reuters) - China's soybean imports plunged to a 10-year low in April as prolonged customs clearance delays and late Brazilian shipments caused by harvest slowdowns and logistics issues disrupted the usual flow of cargoes, traders and analysts say. Total imports for the month reached 6.08 million metric tons, down 29.1% from the same period last year, marking the lowest level since 2015, according to Reuters calculations based on data from the General Administration of Customs. The customs delays have severely strained China's oilseed processing sector from April through early May, tightening soymeal supplies for its vast livestock industry. Soybean cargoes now take 20-25 days to move from ports to crushing plants, up from the usual 7-10 days, according to four traders, who were granted anonymity given the sensitivity of the issue in China. "Crushing operations have taken a hit," said one source. By early May, several crushing plants in northern and northeastern China had to cut output or halt operations due to backlogs, a trader and analyst said, adding that some feed mills ran out of stock and turned to costly spot cargoes. There has been no official acknowledgement of delays, which come amid the trade war between China and its second-largest soybean supplier. China's customs did not immediately respond to faxed questions about the delay. China's benchmark Dalian soymeal futures briefly rallied in late April but have since retreated, with expectations of incoming Brazilian shipments putting pressure on prices. While crushing activity is gradually recovering, market participants remain cautious about potential port congestion if delays persist. From January to April, soybean arrivals totalled 23.19 million tons, reflecting a 14.6% decline from the 27.15 million tons recorded in the same period last year. Soybean imports are expected to rebound sharply in May and June with some Chinese analysts and traders expecting monthly numbers around 11 million tons. However, Brazil's grain exporters association, Anec, said on Wednesday that total soybean exports could fall to 12.6 million tons in May, potentially limiting how much could be shipped to China. U.S. SOYBEAN PURCHASES DECLINE While Friday's data does not distinguish imports by country of origin, purchases from the U.S. have continued to decline, said Wang Wenshen, an analyst at Shandong-based Sublime China Information. As of the week ending May 1, net soybean sales to China for the 2024/25 marketing year were zero, weekly United States Department of Agriculture data showed. Beijing's 125% retaliatory tariff would virtually halt U.S. soybean imports if no agreement is reached before the marketing season later this year. All eyes are on the upcoming meeting between Chinese and U.S. officials in Switzerland, where U.S. President Donald Trump expects progress on trade and the potential reduction of the 145% U.S. tariff on China. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
China's April soybean imports hit decade-low as customs delays disrupt trade
By Ella Cao and Naveen Thukral BEIJING/SINGAPORE (Reuters) - China's soybean imports plunged to a 10-year low in April as prolonged customs clearance delays and late Brazilian shipments caused by harvest slowdowns and logistics issues disrupted the usual flow of cargoes, traders and analysts say. Total imports for the month reached 6.08 million metric tons, down 29.1% from the same period last year, marking the lowest level since 2015, according to Reuters calculations based on data from the General Administration of Customs. The customs delays have severely strained China's oilseed processing sector from April through early May, tightening soymeal supplies for its vast livestock industry. Soybean cargoes now take 20-25 days to move from ports to crushing plants, up from the usual 7-10 days, according to four traders, who were granted anonymity given the sensitivity of the issue in China. "Crushing operations have taken a hit," said one source. By early May, several crushing plants in northern and northeastern China had to cut output or halt operations due to backlogs, a trader and analyst said, adding that some feed mills ran out of stock and turned to costly spot cargoes. There has been no official acknowledgement of delays, which come amid the trade war between China and its second-largest soybean supplier. China's customs did not immediately respond to faxed questions about the delay. China's benchmark Dalian soymeal futures briefly rallied in late April but have since retreated, with expectations of incoming Brazilian shipments putting pressure on prices. While crushing activity is gradually recovering, market participants remain cautious about potential port congestion if delays persist. From January to April, soybean arrivals totalled 23.19 million tons, reflecting a 14.6% decline from the 27.15 million tons recorded in the same period last year. Soybean imports are expected to rebound sharply in May and June with some Chinese analysts and traders expecting monthly numbers around 11 million tons. However, Brazil's grain exporters association, Anec, said on Wednesday that total soybean exports could fall to 12.6 million tons in May, potentially limiting how much could be shipped to China. U.S. SOYBEAN PURCHASES DECLINE While Friday's data does not distinguish imports by country of origin, purchases from the U.S. have continued to decline, said Wang Wenshen, an analyst at Shandong-based Sublime China Information. As of the week ending May 1, net soybean sales to China for the 2024/25 marketing year were zero, weekly United States Department of Agriculture data showed. Beijing's 125% retaliatory tariff would virtually halt U.S. soybean imports if no agreement is reached before the marketing season later this year. All eyes are on the upcoming meeting between Chinese and U.S. officials in Switzerland, where U.S. President Donald Trump expects progress on trade and the potential reduction of the 145% U.S. tariff on China. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
China resumes Brazilian soy imports from 5 suspended firms ahead of Lula visit, source says
By Laurie Chen and Ella Cao BEIJING (Reuters) -China, the world's largest soybean buyer, has resumed Brazilian soybean shipments from five firms previously suspended over phytosanitary concerns, according to a source familiar with the matter and Chinese customs data. Brazil is the world's largest soybean producer and exporter, and the top supplier to China as the trade war drives Beijing to diversify away from the United States, its second-largest supplier. The source confirmed that the resumption of supplies began on April 25, weeks ahead of a planned state visit to China by Brazilian President Luiz Inacio Lula da Silva and at a time when China is trying to marshal a global coalition against the U.S. trade war. Reuters reported in January that China had suspended imports from related entities of Terra Roxa Comercio de Cereais, Olam Brasil, Cooperativa Agroindustrial, Cargill Agricola S.A., and ADM do Brasil. Global giants like Cargill have many subsidiaries licensed to export to China. Brazil said at the time it intended to raise the issue with Beijing and its agriculture ministry last month provided officials there with information about the suspended firms. According to a Chinese customs database, all entities with the exact names of the five firms currently hold "normal" registration status. The database does not specify the resumption date, and Reuters was unable to verify their prior status. ADM do Brasil parent Archer-Daniels-Midland Co, Cargill Inc - the privately-held U.S. grain trading giant and parent of Cargill Agricola SA - Terra Roxa Comercio de Cereais and the parent firms of the other two affected companies did not immediately respond to requests for comment. China's GACC and the Brazilian Embassy also did not respond to requests for comment. China, which purchases more than 60% of globally traded soybeans, sources over 70% of its imports from Brazil -further eroding U.S. market share. In 2024, China imported a record 105.03 million metric tons of soybeans, with more than 74 million tons coming from Brazil. Brazil's bumper harvest is expected to bolster China's soybean imports to a record high in the second quarter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
