Brazil to lead soymeal exports as Argentina’s production slumps

Brazil is poised to uphold its position as a major player in soymeal exports, very likely to emerge as the world’s leading supplier of this commodity, with shipments expected to reach 21.82 million tonnes. The recently released Logistic Bulletin from the National Supply Company (Conab), issued on Monday (21), sheds light on this process, attributing it to the decline in soy processing in Argentina.  The country’s oilseed production is projected to plummet by 50% compared to the previous year, marking the country’s worst performance since the 1999/00 cycle.

Another significant driver behind Brazil’s surge in soybean meal supply is the robust demand from the Brazilian biodiesel industry. This demand surge has propelled soybean oil prices within the Brazilian market. The global demand for Brazilian soybean oil is also on the rise, contributing to record exports of the by-product, as indicated by Comex Stat.

Soymeal exports from Brazil have already reached 12.9 million tonnes in the year up to July 2023, a notable increase from the 12.2 million tons during the same period last year. Notably, the ports of Santos (40.6%), Paranaguá (29%), Rio Grande (15.5%), and Salvador (5.7%) have emerged as pivotal exit points.

The chart below shows the volume of Brazilian soybean and soymeal (hs code 1201) exports, measured in tonnes, between Jan 2019 and Jun 2026, according to the DataLiner intelligence service.

Brazilian soy exports | Jan 2019 – Jun 2026 | WTMT

Source: DataLiner (click here to request a demo)

Almost 36.1% of Brazilian soybean exports departed from the port of Santos, while 37.3% were routed through the port in northern Brazil. Furthermore, corn exports have amplified their presence through the ports of the so-called “Arco Norte,” accounting for 39.8% of national movement in July/23, up from 36% in the same period last year.

In terms of corn, the port of Santos constitutes 27.2% of the total movement, followed by the port of Paranaguá at 16.9%, and the port of São Francisco do Sul at 7.7%, experiencing a significant uptick from 2.6% during the same period in the previous fiscal year. Both corn and soybeans predominantly originate from states such as Mato Grosso, Goiás, Paraná, and Mato Grosso do Sul.

Source: Agro em Dia

To read the original news report, visit: https://agroemdia.com.br/2023/08/22/brasil-assume-lideranca-mundial-no-fornecimento-de-farelo-de-soja/

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