Brazilian soy exports set new record

Brazilian soy exports from January to November have already set a new all-time annual record. According to data released on Tuesday by ANEC (the national association of cereal exporters), shipments during the first 11 months totaled 84.2 million tons, almost 1 million more than the 2020 total — which reached 82.3 million tons according to the entity’s calculations. The highest level to date was in 2018 (83.3 million tons).

After a pace within expectations in the first half, when most of the Brazilian exports are sold, sales gained extra momentum beginning in August – a month during with the flow traditionally slows down due to the drop in available volume and the arrival of the harvest from the American market. But there were logistical problems in the United States after Hurricane Ida hit, and Brazil benefited.

These problems abroad combined with the appreciation of the dollar against the Brazilian real and large inventories after another record harvest in the 2020/21 season means that Brazilian soybeans have become cheaper for China, which leads global imports. Brazil is the largest exporting country.

Check the chart below for a history of Brazilian soybean exports as of January 2018. Data are from DataLiner:

Brazilian Soy Exports (HS 1201) | Jan 2018 to Oct 2021 | WTMT

Source: DataLiner (click here to request a demo)

Chinese demand
Although the Chinese are buying less soy this year — according to Reuters, the country acquired 87.6 million tons from January to November, a drop of 5.5% compared to the same period in 2020 — it is possible to notice an increase in its demand for Brazilian soy since August, according to data from SECEX (the foreign trade secretariat). There were also advances in sales to Spain, Bangladesh, and the Netherlands, among other destinations.

In November alone, Brazilian soybean shipments totaled 2.22 million tons, up 188% over the same month last year (770,300 tons). For December, ANEC expects exports to reach 2.58 million tons, 16 times more than at the end of 2020. If this volume is confirmed, Brazil will export a total of 86.7 million tons this year.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/agronegocios/noticia/2021/12/07/exportaes-brasileiras-de-soja-batem-novo-recorde.ghtml

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