Although Brazil is the world's largest soybean exporter, the sudden local tax reform has prompted Chinese buyers to buy a large number of American soybeans.
Bloomberg News reported on Wednesday (June 12) that since Brazil's taxation measures last Tuesday (4th), according to data from the US Department of Agriculture, China, the world's largest buyer in the world, has purchased at least at least the United States.28,000 tons of soybeans.Such a fast -buying transaction has been the first one since January this year.
These procurement activities highlight the difficulty of Brazilian President Lula's temporary measures. This tax measure limits the ability of Brazilian commodity exporters and processors to monetize some of the tax deduction.According to insiders, the Brazilian Minister of Finance, Fernando Ada, is considering the withdrawal of this decision because it has aroused strong opposition from enterprises and Congress.
The Brazilian Botanical Oil Industry Association (ABIOVE) representing the main crop traders has long warned that new tax measures will greatly reduce the profits of soybean processors.Some traders have also withdrawn new offers of products such as soybeans and corn.
