Brazil’s soy meal exports soar to top spot among agricultural products

Soybean meal emerged as a standout in Brazil’s agricultural sector exports last month, claiming the top spot in the export rankings. Classified by Secex (Secretary of Foreign Trade) as a manufacturing industry product, this marks the first time the product a assumes such position.

In May, Brazil exported 2.76 million tonnes of soybean meal to the foreign market, representing a remarkable 38% increase compared to the same month last year.

See below Brazil’s exports of soybeans and soymeal altogether registered form Jan 2019 to Apr 2023. The data is from DataLiner.

Soy exports from Brazil | Jan 2019 – Apr 2023 | WTMT

Source: DataLiner (click here to request a demo)

Argentina, the world’s primary exporter of soy meal, has been grappling with production challenges due to a soy crop failure caused by drought in the region. As a result, Brazil has seized the opportunity and captured a significant share of the market previously dominated by its neighboring country. It is anticipated that Brazilian soybean meal exports will reach a total of 21 million tonnes this year.

During the first four months of the year, revenue from soymeal amounted to an impressive US$ 5.1 billion, surpassing last year’s January-to-May figures by 18%. The volume of exports increased by 10% during this period, accompanied by a 7% rise in average prices, according to data from Secex.

Comparing the volume of soybean meal exports from last month to the same period in 2022, May’s volume surpassed the previous year’s by a remarkable 47%, while revenues witnessed a substantial 23% growth. However, it is worth noting that prices in the foreign market were 16% lower compared to a year ago.

Rice exports have also been a notable highlight this year. From January to May, foreign sales generated a revenue of US$ 240 million, representing an impressive 48% increase compared to the same period last year. Meanwhile, the domestic supply of rice has declined, and this year’s production is projected to be below 10 million tonnes, a first in the past 25 years, according to Conab data.

While poultry and pork proteins experienced a positive trend with increased sales, the situation was quite the opposite for beef. Revenues from beef exports suffered a significant 26% drop throughout the year, accompanied by an 11% decrease in shipped volume and a 17% decline in average prices.

The Chinese market, a key destination for Brazilian beef, temporarily closed following an atypical case of mad cow disease in Pará. However, the market has now reopened, and last month’s total beef exports reached 168.5 thousand tonnes, marking an 11% increase compared to May 2022.

Preliminary data from Secex reveals that agricultural exports, excluding products from the transformation industry such as sugar and meat, reached a noteworthy US$ 9.2 billion last month, representing a significant 16% growth compared to the same month last year. The YTD total stands at US$ 35 billion, indicating an impressive 7.5% increase.

Source: Folha de S. Paulo

To read the original news report, see: https://www1.folha.uol.com.br/colunas/vaivem/2023/06/com-quebra-na-argentina-farelo-de-soja-e-destaque-nas-exportacoes-brasileiras.shtml

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