South America Can’t Capitalize on Chinese Tariffs

With the Chinese tariffs on U-S soy beans and other farm products, cutting sales of those U.S. products.

"This was a golden opportunity for the Argentinians and the Brazilians that they have not been able to capitalize on, necessarily, very well," said USDA Outlook Board Chairman Seth Meyer.

First, for Argentina, there had been export taxes on grains and soy beans there.  The government had just about eliminated those, but now it has put them back in operation.

"So, presumably, that changes the dynamic of exports a little bit. It slightly incentivizes domestic use, and it disincentivies exports. So, its makes it harder for them to capitalize on what's been an opportunity for them."

Meyer said in Brazil, it's a different problem, "Continuous disruption from their trucker strike, so, they appear to have the corn, but they weren't exporting it at the pace their could have...which is really what gave us a lot of export strength in corn, and provided us a good counter-seasonal demand move."

And, has once again, prevented Brazil from taking advantage of the US-China tariff situation.​

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