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COFCO to nearly double soy sourcing in Brazil's Mato Grosso state
November 10, 2017 / 5:13 PM / 14 days ago

COFCO to nearly double soy sourcing in Brazil's Mato Grosso state

SAO PAULO, Nov 10 (Reuters) - Chinese commodities trader COFCO International plans to nearly double the volume of soybeans it sources in top Brazilian grains state of Mato Grosso during the next five years, state authorities said on Friday.

Mato Grosso Governor Pedro Taques, on a trip to China in recent days, has met with Chinese companies with Brazilian investments, including COFCO and Pengxin Group, which recently bought mid-size commodities trader Fiagril.

According to a report by Mato Grosso’s official news agency, COFCO Vice-President Jingtao Chao told the entourage traveling with Taques that he plans to increase soybean sourcing in Mato Grosso to 7.2 million tonnes from 4 million tonnes currently.

Mato Grosso is home to 13 out of 19 elevators the Chinese trader operates in the country.

The Mato Grosso government also said a group of Chinese investors are discussing with Brazilian companies financing for a project to build 30 grain storage complexes in the state, which would require around 1.5 billion reais ($459 million).

Companies, traders and producers would be able to buy stakes in the storage units and become partners. Chinese group B&F is leading talks on behalf of other companies in the country, and Brazilian engineering group Fumagalli is also taking part, according to the state agency.

Mato Grosso has a large grain storage deficit, which led some producers to leave corn exposed to the elements this year.

$1 = 3.27 reais Reporting by Marcelo Teixeira; Editing by Chizu Nomiyama

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