Brazil forced to import soy as China expands its appetite

Brazil is one of the leading producers and exporters of soy in the world, yet data from June showed that the country is now importing the oilseed at the highest level in four years. A report from economic research institute Cepea explains that soy exports broke records in the first half of 2020, which, along with droughts in the south of the country, caused shortages for local companies, forcing them to buy in from Mercosur partners.

Undeniably, one factor contributing to Brazil’s record exports is the appetite for soy in China. According to data by Brazil’s Economy Ministry, Brazil exported 60 million tons of soy in the first half of the year — 43...