Brazil quadrupled wheat exports to Arab markets

Brazil more than quadrupled its volume of wheat exports to the Arab markets in the first four months of this year, advancing from 241,500 tonnes from January to April 2021 to 1.02 million tonnes in the same months of 2022, a 326% increase, according to information compiled by the Arab Brazilian Chamber of Commerce (ABCC) based on data from the Brazilian federal government.

The global wheat market is experiencing concerns on supply due to the war between Russia and Ukraine, essential suppliers in the sector; to ensure provisions, Brazil is increasing exports. In the first four months, Brazil shipped abroad 2.3 million tonnes of wheat, against 568,000 tonnes in the same months of 2021, a 313% increase. Almost half the volume was sent to Arab nations. Exports revenue rose from USD 122 million to USD 714 million.

See below a chart displaying wheat exports from Brazil in the first months of 2020, 2021, and 2022. The data is from DataLiner.

Brazilian wheat exports | Jan – April | 2020 – 2022 | WTMT

Source: DataLiner (click here to request a demo)

As well as for Brazilian exports in general, the increase in Arab wheat export revenue was also higher than the volume. This is a reflection of higher prices in the global market. Brazil obtained USD 311 million from wheat sales to Arab countries from January to April, 485% higher revenue than in the same months of 2021. Each wheat tonne was sold for a 37% higher value than at the beginning of 2021.

Secretary-general and CEO of the ABCC, Tamer Mansour, stated it is a matter of replacing the supply from Ukraine, especially in the case of purchases from Egypt, a country with which Brazil’s relationship is significantly improving and, according to the secretary-general, could advance even further after the visit of the Minister of Agriculture, Livestock, and Food Supply of Brazil, Marcos Montes, and the Special Secretary for Strategic Affairs, Flávio Rocha, to the country in May. Mansour understands the purchase of wheat from Brazil by the Arabs as a natural replacement given the current world scenario.

Four Arab countries made significant purchases and increased their wheat imports from Brazil in the first four months of 2022. The leading market for the product in the bloc was Saudi Arabia, with imports of 505,000 tonnes and a 258% expansion in volume. The Saudis were the primary buyer of Brazilian wheat from January to April among all countries, not just Arabs. On the other hand, Morocco purchased 360,000 tonnes of Brazilian wheat, up 632% over the first four months of last year. Sudan bought 146,300 tonnes and Egypt 46,200 tonnes. The latter two had not imported wheat from Brazil at the beginning of 2021.

Source: ANBA

To read the full original article, please go to:

https://anba.com.br/en/brazil-quadrupled-wheat-exports-to-arab-markets/

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