Brazil increased its exports to Russia in March

The invasion of Ukraine by Russia impacted how Brazil trades with both countries. While the war severely disrupted trade with Ukraine, the value of trade with Russia grew for both imports and exports in March due to increased good prices.

According to data from the Brazilian Secretariat of Foreign Trade (Secex), March saw the value of exported items to Russia increase by 54%, mainly soybeans, sugar, and coffee. In turn, the value of imports increased by 71%, with Brazil purchasing mostly fertilizers, coal, and fuel oils.

“We saw a sharp drop in the trade flow to Ukraine in March. But, on the other hand, the increase in trade value with Russia seen in March results from the rise in prices, even though there is a 9.6% reduction in the total quantity imported,” said Herlon Brandão, undersecretary for Intelligence and Foreign Trade Statistics at the Ministry of Economy.

See below the track record of Brazilian exports of coffee, soybeans, and sugar to Russia in 2021. The data are from DataLiner.

Brazilian exports of coffee (HS 0901), Soybeans (HS 1201), and Sugar (HS 1701) to Russia | 2021 | WTMT

Source: DataLiner (click here to request a demo)

Brazilian sales to Ukraine fell 59% in March, with the total stoppage of shipments of products such as soybeans, while purchases dropped 49%.

War

According to Herlon Brandão, the significant rise in the ministry’s estimates for Brazilian international trade is attributable to the war in Eastern Europe, which impacted export expectations, and the decrease in the dollar-real exchange rate, which led to a higher forecast of imports.

“The conflict led to an increase in the price of products, which generates expectations of a rise in the value exported”, he explained.

Following the record surplus in March, which exports to Russia helped to achieve, the Foreign Trade Secretariat (Secex) of the Ministry of Economy raised its prediction for the trade balance in 2022. The forecast increased from US$ 79.4 billion at the end of the year to US$ 111 .6 billion now, an all-time high. In 2021, the balance remained positive at $61.4 billion, the highest ever recorded annually.

The governmental agency also increased its export projection from US$ 284.3 billion to US$ 348.8 billion this month. The estimate for imports this year grew from US$ 204.9 billion to US$ 237.2 billion.

Source: Canal Rural

To read the full original article, please go to:

https://www.canalrural.com.br/noticias/economia/brasil-aumentou-exportacao-para-russia-em-marco/

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