UPDATED: 23 JUN 20
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China in Brazil

China is Brazil’s main trading partner

CHINA: GOOD READS

OVERVIEW:

The new deals being negotiated between Brazil and China are by far the most important fundamental X factor in global agriculture going forward.  Make sure you follow and understand this.

Brazil's ambassador in Beijing, Marcos Caramuru de Paiva:  

He believes that the entry of Chinese financial groups in Brazil bring something "totally new" to Sino-Brazilian economic relations, highlighting the investment of Fosun Group and Haitong bank.

"I am completely convinced that the photograph that you take today of economic and trade relations between China and Brazil will not be the same in five years.

Mato Grosso

2017 will go down in Mato Grosso history as the year that China entered Brazil ag for the long run.  Earlier in the year, China purchased an equity stake in the, locally run grain trader, Fiagril. This gave the Chinese the ability to directly source soybeans, store them, and move them to ports. 
 
Recently, Cofco has purchased two soy warehouses in northern, MT and plans to build a new one in Marcelandia, MT, which is also in northern MT. This is the most significant strategic move made by an international grain company in many years.
 
China now feels comfortable with the ability for soybeans and corn to move north either via BR 163, barge, or rail in the future. They feel comfortable that the new government will be friendly towards ag.
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I believe that the purchases of these soy warehouses are of extreme importance when analyzing the land market for the future. When the limit of foreign ownership of land is lifted, I think we know where China will be buying land. The new hot spots have been marked.
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Agricultural Sectors I Watch

Railroads Brazilclick for larger image

COFCO In Brazil

COFCO now has 60 percent of its global assets in South America, the world's No.1 farm-exporting region, according to its website.
3 Dec 19:
Cofco International has ordered an internal audit of its accounts in Brazil as it placed 2 of its top executives in the South American country on leave.
  • The global trading arm of China’s top food company is conducting the review after rapid expansion meant the Brazil unit, its biggest, lost control of some of its finances.
  • The company is looking into whether the issue, caused by the continued use of old systems, resulted in losses.
  • Cofco said last month it had placed Valmor Schaffer, managing director for the grains and oilseeds business in Brazil, and regional Chief Financial Officer Wander Meyer on leave and declined to comment on the reason.
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27 November 19
COFCO Intl silos in Sorriso, MT

5 August 19
Johnny Chi gives keynote address at Brazil agribusiness conference

7 June 19
Cofco International to invest $200 mln in Brazil

23 July 18  ​
UPDATE 1-CHINA'S COFCO SAYS BRAZIL NEEDS MORE LOGISTICS INVESTMENTS
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