High commodity prices led agribusiness exports to arecord in April

The general increase in agricultural commodity prices guaranteed a new export revenue record for Brazilian agribusiness firms in April. Shipments last month totaled $14.86 billion, up 14.9% from April 2021, despite sales declining by 13.2% in volume.

According to the Ministry of Agriculture, Brazil’s export prices rose by an average of 32.5% in the last twelve months. With the continuation of the war between Russia and Ukraine, important grain suppliers, the international situation strengthened the uncertainty regarding world supply and demand, on top of keeping prices high and volatile.

Agribusiness imports also increased (14.8%) in April to US$ 1.32 billion. Thus, the sector’s trade surplus stood at US$ 13.5 billion in the month. The participation of the countryside in the country’s total exports, by value exported, grew again and reached 51.5%.

In the year to date, agribusiness exports totaled the equivalent of US$ 48.56 billion, an increase of 34.5% and a record for the four-month period. As for the last twelve months, shipments worth US$ 132.9 billion were sent abroad, 25.4% more than between May 2020 and April 2021.

See below the track record of Brazilian soybean exports from January 2021 to March 2022. These data are from DataLiner, Datamar’s foreign trade intelligence platform.

Exports of Soybeans (HS 1201) from Brazil | Jan 2020 – Mar 2022 | WTMT

Source: DataLiner (click here to request a demo)

The main products exported in April were derived from the soy complex (grains, bran, and vegetable oil), beef and chicken, and coffee. Exports to almost all regions of the world grew, except for Oceania. Asia leads purchases, especially China, which acquired nearly 40% of everything Brazilian agribusiness firms exported last month, with deals totaling US$ 5.9 billion. Spain, India, Japan, and Egypt are destinations that have significantly increased imports from Brazil.

The volume of soybeans exported in April decreased by 24%. The drop was offset by value, which rose 7.4%. The average price per tonne increased 41.8% to US$ 586, and shipments totaled US$ 8.09 billion. China was the biggest buyer, acquiring 7.5 million tonnes, 35.2% less than the amount imported in the same month of 2021.

The war between Russia and Ukraine made it possible for Brazil to expand soybean oil exports. Sales rose 81.3% in April to $415.7 million. The volume shipped grew 24.6%, reaching 260.2 thousand tonnes.

Ukraine is a significant producer of vegetable oils, such as sunflower oil. With the conflict, prices increased in the international market. The average value of Brazilian soybean oil exports increased by 45.6% between April 2021 and the same month this year.

“The current conflict places the two largest world suppliers of sunflower and safflower oil at the center of a dispute, yielding severe impacts to the trade of these products, in addition to drastically affecting the international price of the entire segment,” said the Ministry of Agriculture. India was the leading buyer of Brazilian vegetable oil this year.

See below the track record of Brazilian exports of soy oil from January 2021 to March 2022. These data are from Datamar’s DataLiner.

Brazilian exports of Soybean Oil (HS 1707) | Jan 2021 – Mar 2022 | WTMT

Source: DataLiner (click here to request a demo)

The revenue derived from meat sales surpassed in April for the first time. Shipments generated US$ 2.15 billion for Brazilian exporters, up 37% for the month.

Beef exports registered a record US$ 1.1 billion in April, up 56.2% in value, 22.1% in exported volume, and 28% in the average price.

Even with the suspension of important plants, China increased its purchases of Brazilian beef in April by 118.3% to US$ 675 million. The Chinese were responsible for 61.3% of all Brazilian product exports in the month. Brazil is the world’s leading exporter of beef. The country benefits from the small slaughter cattle supply from other major exporters, such as the United States and Australia.

See below the track record of Brazilian exports of beef to China and Hong Kong from January 2021 to March 2022. These data are from Datamar’s DataLiner.

Brazilian beef (HS 0202) Exports to China and Hong Kong | 2021 – 2022 | WTMT

Source: DataLiner (click here to request a demo)

Chicken meat exports also hit a record in April, with US$ 802.8 million, the highest value recorded by the ministry. The volume exported rose 5.6%, and the average price increased by 27.2%.

The scenario is different for pork exporters as the resumption of production in China impacted Brazilian production. As a result, the value retreated 17% in April to US$ 191.2 million. Volume and price also dropped, 8.8% and 9%, respectively. The sugar-alcohol complex also registered a drop in April. Sales revenue decreased by 8% to US$ 589.8 million.

See below the track record of Brazilian pork exports to China. The data is from DataLiner.

Brazilian Pork Exports to China | Jan 2021 to Mar 2022 | WTMT

Source: DataLiner (click here to request a demo)

Exports of forest products reached US$ 1.49 billion, up 23.1%. The figure is a record of the entire historical series. It is worth noting that the same goes for the volume and values exported. In total, the sector shipped 1.72 million tonnes (up 17%), generating US$ 737.6 million, an increase of 18.5% in revenues.

Even with a 20% lower volume, exports of green coffee reached a record and earned US$ 680 million in April. The coffee sector exported US$ 734.16 million, an amount 43.5% higher than that recorded in the same month of 2021.

The price factor was predominant, according to the ministry. The average price of the commodities increased by 82.7% in the period. “There is concern about the productivity of the 2022/2023 Brazilian crop, given the dry climate that prevailed during its development and the possibility of frosts further ahead in the winter period,” highlighted the governmental body.

Source: Valor Econômico

To read the full original article, please go to:

https://valor.globo.com/agronegocios/noticia/2022/05/20/alta-das-commodities-levou-exportacoes-do-agro-a-recorde-em-abril.ghtml

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