Brazilian soybean exports see strong growth

Fonte: DataLiner

This growth trend is seen to have continued in April. Data released on Monday, May 4, by the Secretariat of Foreign Trade (Secex) indicates that the export of soy from Brazil reached a monthly record of 16.3 million tons in April, compared to 9.4 million tons in the same month last year. The previous record had been set in May 2018, with shipments of 12.35 million tons.

According to the analyst at Safras e Mercado, Fernando Gutierrez, “in 2020 the trend is that Chinese demand for Brazilian soybeans is slightly less than or equal to 2019,” when Brazil exported 58 million tons of oilseeds to the Asian country.

It is worth remembering that China reduced its global demand last year, due to the swine fever that decimated its herd of pigs. That is because the Asian country spends almost half of what it buys on pig production, according to the United Nations Food and Agriculture Organization (FAO).

Moreover, the Brazilian soy sector is confident it will be able to continue to bear up despite China’s commitment to buy US$32 billion in agricultural products from the US for two years, under the agreement that Washington and Beijing signed in January to suspend their trade war.  This is because they believe Brazilian soybeans are more competitive than American soybeans.