US soyameal is seeing steady export demand at a time when interest usually shifts to South America, as currency woes blunt Brazil's competitive edge, US soyameal traders said on Thursday.
Argentine soyameal sales are also benefiting from disruptions in Brazil, where the strength of the real has sparked farmer protests that are disrupting soyabean processing and exporting.
Feed makers in the Dominican Republic, Guatemala and El Salvador have all either recently bought US soyameal or are making inquiries, traders said.
Peru opted to buy soyameal from Argentina, they said.
"Last year, Brazil made inroads to Latin American destinations, but not this year," said a trader. "It's allowing us to have a longer tail on our exports."
Brazilian farmers have blocked roads and rail lines leading to soyabean processing plants and ports, demanding the government improve its farm aid package announced last month and offer greater producer debt extensions. The grain sector's costs have soared with the price of oil over the past year.
The disruptions are expected to continue at least through Tuesday, when a national protest is planned.
As a result of steady demand for US soyameal, prices in the CIF barge market have risen, although export values on a free-on-board basis at the Mississippi Gulf have remained fairly steady, traders said.
The Dominican Republic bought a combined shipment of US soyameal and corn for shipment in June or July, traders said. El Salvador bought a small amount of US soyameal for September shipment.
A feed maker in Guatemala is seeking to buy a combined cargo of soyameal and corn for shipment in June or July, traders said.
The worst farming crisis in 40 years in Brazil is partly to blame on the Brazilian real, which has hit five-year highs against the dollar and has appreciated more than 35 percent against the US currency during the past two years.
A strong local currency hurts export revenues and makes fuel and fertiliser more expensive.
In April, Brazil soyameal exports fell 40 percent from a year ago, to 760,000 tonnes from 1.26 million tonnes, said the country's trade ministry. Soyameal exports in March were 1.06 million tonnes. Soyabean exports continue to exceed last year's levels.
Brazil sells most of its soyameal to Europe.
Part of the reason for the decrease in soyameal exports is that Bunge Ltd and other soyabean processors have shut down crushing plants and expanded operations in Argentina due to more favourable currency factors and tax advantages.
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