Argentina And Brazil

China, Brazil And Argentina Seeking Soy Axis

17 April 2006

MERCOPRESS (MONTEVIDEO)--China, Brazil and Argentina are mulling the creation of a multinational market for soybeans as an alternative to the Chicago Board of Trade. The idea is being explored at a five-day seminar that got under way here Monday, organized by the Brazilian Mercantile and Futures Exchange and markets based in Rosario, Argentina, and Dalian, China. Under the current arrangement, world soy prices are set by the Chicago exchange, which, Weskamp said, does not always reflect the necessities of “our market.” He did not venture to predict how long it will take for Argentine, Brazilian and Chinese exchanges to establish a parallel soy market, noting that many interests are involved. Weskamp also pointed to questions of market access that remain to be resolved with Beijing. China currently consumes around 15 million tons of soy annually, a level of demand that is expected to double in the next few years. Source: http://www.mercopress.com/Detalle.asp?NUM=7684 (Reliability: 7)