Brazil’s May soybean exports jumped 45% on the year to reach 15.5 million mt, the second-highest monthly soy shipment ever, the latest foreign trade department data released on June 1 showed, with a hefty 74% of this volume bound for China, as Chinese crushers chose the more competitively priced Brazilian beans over US-origin supply, despite the US-China Phase 1 trade deal inked in January.

The main reason underpinning China’s strong demand for Brazilian soybeans is its weakened currency. The real has lost over 40% of its value since January, boosting the price competitiveness of Brazil’s soybeans. Over January-May, Brazil shipped 74% of its 49 million mt soybeans exports — a 40% jump from a year ago — to China. Its soybean shipments averaged 0.77 million mt/day in May, a 70% year-on-year spike, the trade report showed…