A stronger presence of Chinese commodity trading house in Brazil has caused more competition for agricultural raw materials. Thus also the current bottleneck in the corn is explained, a consulting company in the South American country.
In the Center-West the Chinese have now own storage room, telling corn the current problem of the tight supply situation.
Unusually strong corn exports from Brazil, which has been boosted by the weak Brazilian currency, so much so that the feed was scarce and the meat producers could no longer pay the high prices reduced the offer in the country.
A market analysis of by Reuters has brought revealed that among other things the State Chinese trading company COFCO have last year bought 45% of Brazilian soybeans, soybean meal and maize.
The competition is for the farmer benefit and meat producers must adapt to the new situation. The traditional international trading houses such as Bunge and ADM are affected by the new market conditions.
