Could we be looking at a soy and grain OPEC in South America?
Argentina and Brazil are negotiating an alliance with other South American producers of grains and oilseeds to deal jointly with buyers in Asia and elsewhere, according to Brazilian Agriculture Minister Wagner Rossi.
Rossi met his Argentine counterpart Julian Dominguez and ministers from Chile, Paraguay and Uruguay in Santiago today and yesterday. Brazil is seeking to draw up “consistent” policies with its neighbors, Rossi said in an interview in Santiago.
A deal between Argentina, Brazil and Paraguay would combine about half of the world’s soybean production, according to U.S. Department of Agriculture data. Argentina and Brazil are also among the world’s top three corn exporters, according to the USDA. China is the world’s largest soybean importer.