Brazil increases soybean exports amid strike in Argentina

A major recent strike in Argentina, the world’s largest exporter of soymeal and oil, has shifted global demand to Brazil, the second-largest supplier of these products. Researchers from Brazil’s Center for Advanced Studies in Applied Economics (Cepea) report that this shift has intensified competition between domestic consumers and international importers, leading to increased export premiums and higher domestic prices.

According to Cepea, the heightened competition is significantly affecting soybean prices in Brazil. The interruption of Argentine exports has forced global importers to seek alternatives in the Brazilian market, exacerbating the situation.

Additionally, the National Supply Company (Conab) estimates a decline in Brazilian soybean production for the 2023/24 harvest, projecting a total of 147.68 million tonnes.

The following chart shows Brazil’s soy export volume measured in metric tonnes between Jan 2021 and Mar 2024. The data comes from DataLiner, a Datamar business intelligence product.

Soy Export Volume | Jan 2021 – Mar 2024 | WTMT

Source: DataLiner (click here to request a demo)

Conab also cautions that the recent floods in Rio Grande do Sul could lead to further negative adjustments, potentially impacting both the supply and prices of the oilseed.

This scenario places Brazil at a crossroads in the global soybean market, presenting both opportunities and challenges. While Brazil stands to gain from increased international demand, domestic consumers are facing higher prices due to the competition.

Source: Agrolink

Click here to read the original news text: https://www.agrolink.com.br/noticias/brasil-aumenta-exportacoes-de-soja-em-meio-a-greve-na-argentina_491323.html

Sharing is caring!