Louis Dreyfus Company and Olam International Ltd have reaped big rewards from a surge in Brazilian soybean exports in 2018 on the back of a US-China trade war that sharply boosted shipments to the Asian nation.
According to data from global maritime agency Williams Shipping compiled by Reuters on Monday, relative to the largest commodities traders operating in Brazil, Dreyfus and Olan had the highest percentage increases in soybean exports out of the South American nation in the January-November period, compared to a year earlier.
Olam increased exports by roughly 237 percent to 5.8 million tonnes through November. Dreyfus boosted overall exports by 30.5 percent to 10.56 million tonnes in the January-November period. Dreyfus' volume corresponded to about 13 percent of Brazil's total soybean exports in the period, the data showed.
Luis Barbieri, oilseeds head for Dreyfus' Brazilian unit, told Reuters in an interview that the result reflected investments made by the commodities trading firm, particularly in logistics, and the quality of its relationship with Brazilian farmers.
"I think one of the key factors to achieve such above average growth (in exports) was our investment in infrastructure. Another factor was our focus to stay close to the producer," Barbieri said. Olam said the increase in soybean shipments is in line with the rise of flows from Brazil to China, driven by the trade tensions between the United States and China, the world's top soybean buyer.