Brazil’s soy oil exports to drop in 2023 after 16-year peak

According to data and projections from the Brazilian Association of Vegetable Oil Industries (Abiove), Brazil’s soy oil exports in 2023 are expected to reach 1.6 million tonnes only, a 33% decrease from 2022. This year, the South American country is expected to see the highest level of shipments in 16 years.

Domestic demand for vegetable oil will be higher in 2023, when a return to higher levels of biodiesel blend in diesel is expected, reducing the product’s availability for export.

The most recent soybean oil export projection for 2022 stood at 2.4 million tonnes, 200,000 tonnes more than Abiove’s October projection. The volume denotes the highest level of vegetable oil shipments since 2006 when the country exported 2.419 million tonnes, a 750 thousand-tonne increase over 2021.

Edible oil exports were intense this year, despite a 10% reduction in biodiesel mix, as the sector found a promising substitute market abroad: India made large purchases of the soybean by-product from Brazil, as the country tried to offset the shortage of Ukrainian sunflower, whose supplies were hampered by the war.

See below the track record of soybean oil (hs code 1507) exported from Brazil between Jan 2019 and Oct 2022, according to the DataLiner data service.

Soy oil exports | Jan 2019 – Oct 2022 | WTMT

Source: DataLiner (click here to request a demo)

According to Abiove, the heated demand for soybean oil – with output estimated at a record level of more than 10 million tonnes – helped to boost oilseed processing in 2022, which totaled 49.7 million tonnes of the grain, 700 thousand tonnes above the previous projection and about 2 million tonnes more than in 2021.

This context also increased soybean meal production, an important component of animal feed. As a result, this sector’s output should grow to unprecedented 38 million tonnes, while exports will also reach 20.2 million tonnes versus 17.2 million in 2021.

Brazil increased the manufacture of soy derivatives despite the smaller harvest in 2022, which limited grain exports to 77.5 million tonnes, against a historic 86.1 million in 2021.

Source: Forbes

To read the full original article, please go to: https://forbes.com.br/forbesagro/2022/12/apos-maxima-desde-2006-exportacao-de-oleo-de-soja-do-brasil-caira-em-2023/

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