Brazil imported soy to supply domestic demand after breaking export records

Brazil imported soy in significant amounts in June to supply domestic demand after breaking export records.  According to the Center for Advanced Studies in Applied Economics at USP (Cepea), in June industries in southern Brazil purchased 89,760 tonnes of soybeans, all from Paraguay. The number is more than double what was imported in May. In addition, it is the highest value of soy imported since June 2016, according to data from the federal government.

Brazil is the world’s largest producer and exporter of soybeans and harvested more than 120 million tonnes of the bean last season. Brazilian farmers traded 61.87 million tonnes in the first half of this year, up 41.5% over the same period in 2019.

The following graph shows Brazilian exports of soy in the first five months of 2019 and 2020:

According to the Agricensus consultancy, data from the Central Bank of Paraguay points out that Brazilian imports of Paraguayan soy increased almost five times in the first half compared to the same period last year. From January to June this year, Brazil purchased 379,100 tons of soy from the neighboring country, an increase of 370% in relation to the 80,600 tonnes during the same period last year.

According to the Foreign Trade Secretariat (Secex), Brazil imported a total of 45,700 tons of soy in the first eight working days of July. When adding the total imported between May, June, and the first working days of July, Brazilian soy imports already total 178,500 tonnes, a volume much higher than in the same period of 2019.

Sources: Agricultural News. Economic Value and Fleet & Company

Sharing is caring!