Brazilian soy oil imports increased by 8000% in November

Detailed data from the Ministry of Agriculture released on December 10 indicate that Brazilian imports of soybean oil increased by more than 8000% in November, with Argentina supplying most of Brazil’s imports of the commodity to make up for the shortage in the domestic market.

Rice imports almost tripled last month compared to November 2019, to around 150,000 tons, including 56,000 tons of the North American product, temporarily imported at zero tariffs.

Dealing with record prices in 2020 after historic soybean exports in previous months due to strong demand from China and an exchange rate that also favored foreign rice sales, Brazil had to take relief measures, such as exemption from import tariffs and releasing the imported raw material for use in the manufacture of biodiesel, notably soybean oil.

In November, of the 55,000 tons that Brazil imported of soy oil, a volume of just over 40,000 tons came from Argentina – the largest global exporter of this product -, with Paraguay (12,500 tons) and even Bolivia (1,800 tons) complementing the offer.

Year-to-date from January to November, soybean oil imports totaled around 160,000 tons, versus less than 30,000 in the same period of 2019, with Argentines offering more than 120,000 tons and the rest coming mainly from Paraguayan industries.

YTD soybean imports reached about 750,000 tons, an increase of more than 470% compared to the 131,000 in the same period last year, with some analysts betting that Brazil will bring in at least another 100,000 tons in December to close 2020.

Of the total imported, most came from Paraguay (662,000 tons), with Uruguay supplying another 85,000 tons, according to data from the ministry.

Source: Reuters

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