From oil to coffee- Brazil closes 2020 with record levels of commodity exports

Data released on January 4 by the Ministry of Economy point out that in 2020, Brazil recorded record volumes shipped for its main commodities, with emphasis on oil, sugar, and meat imported by China, while coffee also had a record year.

Shipments of soybeans, Brazil’s main export product in terms of value, grew 13% compared to 2019, to 83 million tons, due to steady Chinese demand, although the grain did not surpass the volume record set in 2018

Iron ore, which together with soy and oil form the products that lead the country’s export basket, registered a 2% reduction in the total shipped after the production of mining company Vale fell short of what was expected last year. In 2019, in view of the consequences of the Brumadinho – MG disaster, shipments had already dropped to around 335 million tons. In terms of revenue, however, there was an increase of 14.3% in iron ore exports, with the average price rising 16.7% in the annual comparison, also due to the lower production of the Brazilian mining company, as well as the strong Chinese demand.

Oil and fuels

Brazilian oil exports last year reached 70.6 million tons, up 18.5% compared to 2019, with countries like China taking advantage of low prices to purchase large quantities. In revenue, shipments fell almost 19% to $ 19.5 billion. Shipments of fuel oils also reached historic highs of 15.5 million tons, as pre-salt production grows.

Soybean meal and coffee

Still on agricultural products, if soybean shipments in 2020 were only 200,000 tons lower than the volume of 2018, soybean meal exports had historical highs last year, totaling 17.5 million tons.

Unroasted coffee ended the year with historical shipments of 2.373 million tons (or 39.55 million 60-kg. bags), with an increase of 7.2% in volume shipped and an increase of 9.6% in billing, to almost 5 billion dollars.

Cotton shipments also set a record, although Brazilian exports were postponed at some point in the year due to uncertainties generated by the coronavirus.

Feather exports still reached historic highs in value, totaling 3.2 billion dollars for a total of 2.12 million tons, counting on demand from China, which also helped the country to achieve the highest exports of meat ever recorded for beef and pork.

Sugar was another product that set record export levels, much in the wake of Chinese purchases, who managed to get out of the pandemic faster, although the coronavirus originated in the Asian country. Total shipments of the sweetener reached 31 million tons, totaling almost 9 billion dollars.

In the case of corn, exports fell about 18% from a record of 42.7 million tons exported in 2019.

Sources: Reuters and G1

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