Latest news with #Agrinvest
Associated Press
05-06-2025
- Business
- Associated Press
Marex Agrees to Acquire Agrinvest Commodities
LONDON, June 05, 2025 (GLOBE NEWSWIRE) -- Marex Group plc ('Marex' or the 'Group'; NASDAQ: MRX), the diversified global financial services platform, today announces that it has agreed to acquire Agrinvest Commodities, a Brazilian agricultural commodities business. This acquisition will expand Marex's operations in the Americas and add new capabilities and clients to diversify earnings. Agrinvest acts as an agent connecting buyers and sellers in physical agricultural markets including corn and soybeans. It also provides its clients with consulting support to understand their hedging options and commercial strategies within these agricultural markets. Acquiring Agrinvest gives Marex physical commodities capabilities in Brazil, in addition to its existing derivatives operations. With about 1,300 clients and 100 employees, Agrinvest augments Marex's current Brazilian business. Ian Lowitt, CEO of Marex, commented: 'Brazil is a globally important commodity producer and is a country where we have been looking to expand. Agrinvest's partners have built an impressive business, and we see great potential in supporting their future growth across Brazil. This deal will bring new clients to our platform, and we also see opportunities to offer them additional hedging services.' Ram Vittal, CEO of the Americas, Marex, commented: 'We're excited to expand our presence in the Americas with the acquisition of Agrinvest in Brazil, reinforcing our commitment to growth across the region. The addition of Agrinvest strengthens our agricultural business and broadens our capabilities, allowing us to expand in one of the world's most dynamic agriculture markets.' Benedito Joao Gai Neto, CEO of Agrinvest, commented: 'We are thrilled to join the Marex platform, with its global reach, growing client base and range of capabilities. As part of Marex, we will have the support we need to expand our business and the services we can offer our clients in this exciting region, and also in other countries.' About Marex: Marex Group plc (NASDAQ: MRX) is a diversified global financial services platform providing essential liquidity, market access and infrastructure services to clients across energy, commodities and financial markets. The Group provides comprehensive breadth and depth of coverage across four services: Clearing, Agency and Execution, Market Making and Hedging and Investment Solutions. It has a leading franchise in many major metals, energy and agricultural products, with access to 60 exchanges. The Group provides access to the world's major commodity markets, covering a broad range of clients that include some of the largest commodity producers, consumers and traders, banks, hedge funds and asset managers. With more than 40 offices worldwide, the Group has over 2,400 employees across Europe, Asia and the Americas. For more information visit Enquiries please contact: Marex: Nicola Ratchford / Adam Strachan +44 778 654 8889 / +1 914 200 2508 [email protected] / [email protected] FTI Consulting US / UK +1 716 525 7239 / +44 7976870961 [email protected]
Reuters
28-03-2025
- Business
- Reuters
China absorbs massive Brazilian soy shipments in first quarter
SAO PAULO, March 28 (Reuters) - Brazilian soybean traders are poised to ship record volumes in the first quarter, driven by strong demand from the world's largest importer, China, which is currently involved in a trade war with the U.S., three analysts said, citing shipping data. Current soy volumes being shipped do not yet reflect the effects of the new trade war, the analysts said. They believe an escalation will direct more Chinese demand to Brazil over time, as was the case in 2018. Brazilian traders had loaded 22.8 million tons of soybeans onto vessels through March 25, 17.7 million of that going to China, said Eduardo Vanin, an analyst with Agrinvest. He noted both figures "are records" in spite of some logistical bottlenecks and a slow start to Brazil's harvest. Brazil's first-quarter soy shipments to China reflect advanced purchases for some 33 million tons made by December 2024, when the new crop was not ready and Chinese crushing markets were healthy, Vanin said. This is 7 million tons more than in the previous season at the same time. Brazilian farmers normally sow soybeans from September and harvest the crop in the first weeks of the new year, depending on the region. Ports start getting busy from February on. Andre Pessoa, a partner at agribusiness consultancy Agroconsult, said the trade war has no influence on shipments now, though China's advance buying movement last year suggests Chinese importers were "preparing for a possible Trump victory." Brazil will reap more than 170 million tons of soy this year, the highest ever. "I think the influence of the trade war is very small for now," said Luiz Fernando Roque, an analyst at Hedgepoint Global, adding Chinese demand for Brazil's soy has been on the rise for years. Even so, Roque expects Brazil's soy shipments to China to break last year's record for the first quarter, totaling around 18 million tons in the period, some 2 million tons higher than in the previous year. He added the effects of the trade war tend to be more intense in the second half of the year, when the U.S. generally sells more soy to China. In January and February, China received 79% of Brazilian soybean exports, compared to 75% in the same period last year, grain exporters' lobby Anec said.
Yahoo
06-03-2025
- Business
- Yahoo
Analysis-Brazil braces for more Chinese demand, higher food prices amid US trade war
By Roberto Samora and Gabriel Araujo SAO PAULO (Reuters) - U.S. President Donald Trump's trade war with China will give Brazilian agricultural exporters an opportunity to take an even bigger share of the Chinese market at the expense of American farmers, but it could also fuel already high food inflation in Brazil. China this week retaliated swiftly to fresh U.S. duties announced by Trump, imposing hikes of 10% and 15% in levies covering $21 billion worth of American agricultural goods, including meat and soybeans. Brazil, the world's largest exporter of soy, cotton, beef and chicken meat, is expected to ship more to China as importers there seek tariff-free imports. During Trump's first term, the trade war he triggered with China led to U.S. farmers losing a chunk of market share to Brazil, including for China's valuable soybean imports. The U.S. never regained that market share for soybeans. China continues to buy more of its agricultural imports from Brazil than it did before the first trade war, and that will likely accelerate again with the latest round of tariffs. "Rising U.S.-China tensions are likely to prompt China to source more grains and proteins from Brazil, potentially lowering commodity demand and in turn prices in the U.S., while increasing demand and prices in Brazil," Santander analysts said. Prices for Brazilian soybeans are already on the rise. The premium at local ports hit a season high this week, said Eduardo Vanin, analyst with Agrinvest. "Any additional demand from China could result in stronger exports from Brazil at healthier prices," Itau BBA analysts said in a note to clients. That would support Brazilian farm companies such as SLC Agricola and BrasilAgro. More exports would mean less domestic supply, however, and that would increase costs for grains to feed to animals for local meatpackers such as JBS and BRF. SEVERE PRESSURE A surge in food prices, however, would be bad news for Brazil's President Luiz Inacio Lula da Silva, whose popularity has plunged in recent months, mainly due to elevated food costs. Food and beverage prices rose around 8% in 2024 as a whole, according to statistics agency IBGE, and in January were up by nearly 1%, marking a fifth consecutive month of increase. February data will be released next week. Brazil's central bank, which has been hiking interest rates, has said that higher meat prices were key to a significant rise in food costs and described an adverse short-term scenario. Vice President Geraldo Alckmin and other officials have a meeting with leaders of the food industry on Thursday, as the government seeks ways to lower food prices. Inflation also rose in 2018-2019, when Brazil exported more agricultural goods to China. Brazil's consumer prices ended 2018 at 3.75% and accelerated to 4.31% at the end of the following year. BACK TO THE FUTURE Santander noted that although less severe than the 2018 levies, the latest tariffs announced by Beijing would accelerate long-term diversification away from U.S. supplies. China's turbo-charged demand would brighten an already positive outlook for Brazil's agribusiness, which sees production of key goods reaching all-time highs this year. Brazil is expected to reap a record soybean crop of about 170 million metric tons in 2024/25, with exports exceeding 100 million tons, and the beef, poultry and pork industries also forecast record output and shipments this year. "China will seek to obtain as much as possible from Brazil," Carlos Cogo of agribusiness consultancy Cogo said, adding that the fresh tariffs would make U.S. products even less competitive against Brazilian ones. PRIME MEAT Representatives of Brazil's meat producers said the shift in global trade should be positive for the South American country. "Brazil will end up benefiting, especially in terms of prices and profitability," Ricardo Santin, the head of meat lobby group ABPA, told Reuters. Shares of Brazilian meatpackers and grain producers were roughly flat on Thursday after rising sharply in the previous session. Santin said that gains from more exports to China, already a major buyer of Brazilian meat, would probably offset higher feed costs. Sign in to access your portfolio
Reuters
06-03-2025
- Business
- Reuters
Brazil braces for more Chinese demand, higher food prices amid US trade war
Summary Companies Brazil likely to take more of China's import market from US Higher export demand to drive up domestic food prices Food inflation already risen for five months in a row Govt under severe pressure, to meet industry leaders Thursday SAO PAULO, March 6 (Reuters) - U.S. President Donald Trump's trade war with China will give Brazilian agricultural exporters an opportunity to take an even bigger share of the Chinese market at the expense of American farmers, but it could also fuel already high food inflation in Brazil. China this week retaliated swiftly to fresh U.S. duties announced by Trump, imposing hikes of 10% and 15% in levies covering $21 billion worth of American agricultural goods, including meat and soybeans. Brazil, the world's largest exporter of soy, cotton, beef and chicken meat, is expected to ship more to China as importers there seek tariff-free imports. During Trump's first term, the trade war he triggered with China led to U.S. farmers losing a chunk of market share to Brazil, including for China's valuable soybean imports. The U.S. never regained that market share for soybeans. China continues to buy more of its agricultural imports from Brazil than it did before the first trade war, and that will likely accelerate again with the latest round of tariffs. "Rising U.S.-China tensions are likely to prompt China to source more grains and proteins from Brazil, potentially lowering commodity demand and in turn prices in the U.S., while increasing demand and prices in Brazil," Santander analysts said. Prices for Brazilian soybeans are already on the rise. The premium at local ports hit a season high this week, said Eduardo Vanin, analyst with Agrinvest. "Any additional demand from China could result in stronger exports from Brazil at healthier prices," Itau BBA analysts said in a note to clients. That would support Brazilian farm companies such as SLC Agricola ( opens new tab and BrasilAgro ( opens new tab. More exports would mean less domestic supply, however, and that would increase costs for grains to feed to animals for local meatpackers such as JBS ( opens new tab and BRF ( opens new tab. SEVERE PRESSURE A surge in food prices, however, would be bad news for Brazil's President Luiz Inacio Lula da Silva, whose popularity has plunged in recent months, mainly due to elevated food costs. Food and beverage prices rose around 8% in 2024 as a whole, according to statistics agency IBGE, and in January were up by nearly 1%, marking a fifth consecutive month of increase. February data will be released next week. Brazil's central bank, which has been hiking interest rates, has said that higher meat prices were key to a significant rise in food costs and described an adverse short-term scenario. Vice President Geraldo Alckmin and other officials have a meeting with leaders of the food industry on Thursday, as the government seeks ways to lower food prices. Inflation also rose in 2018-2019, when Brazil exported more agricultural goods to China. Brazil's consumer prices ended 2018 at 3.75% and accelerated to 4.31% at the end of the following year. BACK TO THE FUTURE Santander noted that although less severe than the 2018 levies, the latest tariffs announced by Beijing would accelerate long-term diversification away from U.S. supplies. China's turbo-charged demand would brighten an already positive outlook for Brazil's agribusiness, which sees production of key goods reaching all-time highs this year. Brazil is expected to reap a record soybean crop of about 170 million metric tons in 2024/25, with exports exceeding 100 million tons, and the beef, poultry and pork industries also forecast record output and shipments this year. "China will seek to obtain as much as possible from Brazil," Carlos Cogo of agribusiness consultancy Cogo said, adding that the fresh tariffs would make U.S. products even less competitive against Brazilian ones. PRIME MEAT Representatives of Brazil's meat producers said the shift in global trade should be positive for the South American country. "Brazil will end up benefiting, especially in terms of prices and profitability," Ricardo Santin, the head of meat lobby group ABPA, told Reuters. Shares of Brazilian meatpackers and grain producers were roughly flat on Thursday after rising sharply in the previous session. Santin said that gains from more exports to China, already a major buyer of Brazilian meat, would probably offset higher feed costs.
