Epidemic
getting worse: leading to unstable soybean export from Brazil and Argentina
As COVID-19 spreads globally, the major agricultural products and beans market in the world are affected. Brazil, where the soybean output is the largest, becomes unstable in soybean export due to longer shipment arrangement term and higher strike risks caused by declined economy in South American market and the global epidemic situations.
The
countermeasures adopted by the Brazil government to the COVID-19 epidemic made
soybean transportation uncertain.
The
Minister of Infrastructure Department of Brazil is negotiating with the Governor
to avoid blocking of highway transportation and to keep ports and airports accessible.
The government tries to guarantee no barriers between set by cities. However,
if the truck transportation for grains is restricted, the grain trade in Brazil
will be interrupted seriously when soybean export now just starts speeding
up.
It is unable to
deliver fresh soybeans in time resulting in lockdown of Argentina.
Except Brazil, Argentina
is the top exporter of soybean pulp and soybean oil, and the third exporter of
soybeans and corns in the world. To prevent cross infection caused by gathering
and movement of people and prevent spreading of COVID-19, Argentina started a
nationwide lockdown, and implemented forced quarantine. They set barrier on
highway to strictly check passing vehicles and forbid going out illegally.