China is building megaports in South America to feed its need for crops – China has reassured its citizens they would have enough to eat without U.S. crops. It will have to unclog Latin America’s largest port first.

Wall Street Journal is gated, link here if you can access.

Main points:

• China state grain trader Cofco plans world’s biggest export terminal in Brazil to substitute U.S. soybeans and other foodstuffs
• China is investing in South American infrastructure to secure agricultural imports.
• Santos, Brazil’s main port for exports to China, is struggling with capacity and infrastructure.
• Brazil’s fertilizer supply issues and soil nutrient depletion pose challenges to increased crop production.

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I speculated earlier on this, it seems pretty obvious. What else is China gonna do?

• China’s foreign minister meets Brazil counterpart in Beijing

And, last week:

• China intends to buy around US$900 million of soybeans, corn, vegetable oil from Argentina

This article was written by Eamonn Sheridan at www.forexlive.com.