Wednesday, September 19, 2018

Bayer says that agricultural trade routes can change on tariff dispute

MONHEIM, Germany (Reuters)-Bayer (BAYGn.DE) said on Tuesday that it would be difficult to predict the results of 2019 agricultural business now include Monsanto, because the trade dispute between the United States and China can retrace the routes global trade of agricultural commodities. The head of the "crop science" of Bayer told Reuters that the company could benefit if u.s. farmers to produce more corn to avoid trade barriers for trade in soybeans, imposed by China in response to the rates the United States on Chinese products. Bayer and Monsanto have combined a much larger participation in the market of corn seeds and corn protection products than in the soy market, so they could capture more of that growth. "The great unknown of next year will be like the US producers will react to the US-China trade war," said Liam Condon backstage at a press conference at the headquarters of the Division in Monheim, in Germany. "It could be a positive development, when u.s. producers plant less soybeans and more corn," he said, adding that China mainly depends on u.s. imports of soybeans and less corn. The acquisition of Monsanto became Bayer the largest manufacturer of seeds and pesticides in the world, ahead of Corteve Agriscience, DowDuPont (DWDP. N), of Syngeta and of BASF (BASFn.DE). "It's safe to predict, other things equal, is getting that much more brazilian soybeans will go to China and less soybeans will of the United States to China," said Condon, adding that the American soy can be targeted for Europe, if the Brazilian trade stay focused on the new Chinese market.
Reuters - 18/09/2018 News Item translated automatically
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