U.S. wheat exports seen expanding into Brazil.

As a result of the election of Alberto Fernandez in Argentina, Brazil's president Jair Bolsonaro has taken actions that favor U.S. ag products over Argentinian products. Fernandez's running mate is former president Cristina Kirchner, who had a very protectionist administration until 2015. Recently, Bolsonaro allowed the entrance of 750,000 tons of U.S. wheat with zero tariffs. Argentina is the top supplier of wheat into Brazil with over 7 million metric tons with unlimited quotas without tariffs because it belongs to the Mercosur free trade bloc. Traditionally, Brazil's Northeastern ports have been the top wheat importers, and Argentina wheat prices into those ports are still more competitive than U.S. wheat, nowadays. If the difference is calculated in all Northeastern ports and the port of Santos, the top consumer port in Brazil with significant wheat imports, Argentinean wheat is between $150 and $300 per ton less than imported U.S. wheat.

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