The severe drought in Argentina, which reduced the grain harvest by more than half and wreaked havoc on the country’s already weakened economy, had an unusual effect: soy became the number one product exported by Brazil to its neighbors, leaving behind the traditional list, with items such as vehicles and auto parts. From January to June this year, purchases of Brazilian soybeans by Argentina increased by 1,160% compared to the first half of last year. The grain now has an unprecedented share of 16% of the total sold to neighbors, while auto parts got 10% and cars 9.1%. In the first half of this year, Brazil sold US$ 1.5 billion in soybeans to Argentina. Sales of all Brazilian products to the neighboring country increased by 26.3%, totaling US$ 9.452 billion.
Sources: O Globo/Datamar News