Grains

International prices bring exports to a USD 14bn record in July

Aug, 12, 2022 Posted by Gabriel Malheiros

Week 202232

In July, Brazilian agribusiness exports were impacted by the increase in average export prices, which grew 24.8%. As a result, sales to the foreign market reached a record value for the month: US$ 14.28 billion (+26 .8% compared to July/2021). The quantum index rose 1.6%. The share of agribusiness reached 47.7% of total national exports.

The increase in the quantum index is mainly caused by a rise in the volume of maize exported in July, which reached more than 2 million tonnes in absolute terms. Other standouts were soy complex goods (grains, bran, and oil) and beef and poultry.

“Although exports set a record in July, they were the lowest in the last four months of 2022. In comparison to June exports this year, there was a deceleration of 8.6% in values, owing to a 2.2% drop in the price index and a 6.6% decrease in exported volumes,” explains the Secretary of Commerce and International Relations of the Ministry of Agriculture (Mapa).

Imports of agribusiness products totaled US$ 1.48 billion (+19.3%), also influenced by average prices, which grew 16.1%.

Corn

Foreign corn sales rose from 1.99 million tonnes in July/2021 to 4.12 million tonnes in July/2022 (+106.9%). Exports only surpassed this volume in 2019, which reached 5.93 million tonnes in the same month.

The exported value of US$ 1.15 billion (+189.7%) was a record for July, owing to strong average export prices of cereal, which were 40% higher than the same month last year.

Iran was the biggest importer of Brazilian corn in July this year, with the acquisition of 832 thousand tonnes or the equivalent of US$ 258.93 million (+308.4%). Colombia comes in second (US$ 118.42 million; +2,416.7%), and Japan in third (US$ 102.97 million; +34.3%).

The high availability of corn, announced by Conab in July this year, with the first and second crops in the harvesting phase, and the third harvest planting expected to be completed, created a favorable scenario for a higher pace of exports in the second semester, whose domestic demand forecast for the year is 77.19 million tonnes.

Soy complex

Sales abroad of products from the soy complex reached US$ 6.03 billion in July/2022 (+21%). The rise in the prices of these products (+33.5% on average) was responsible for the somewhat positive results, as the volume exported fell by 9.4%.

This volume drop was observed in soybean exports, which went from 8.67 million tonnes in July 2021 to 7.52 million tonnes in July 2022 (-13.3%). With a production of 14.11 million tonnes lower than the 2020/2021 crop (-10.2%), the 2021/2022 crop made less grain available for export this year.

Even so, soybean exports reached a record value for July, US$ 4.71 billion (+18.2%), due to high average prices (+36.3%), reflecting the lower availability for international shipments.

China increased its participation in acquisitions, from 66.5% of the volume exported by Brazil in July/2021 to 68.8% in July/2022 (5.2 million tonnes; -10.3%).

On the other hand, the other two items in the sector exhibited a gain in exported quantity, fueled by the high prices established in the international market, given the present demand and supply dynamics, primarily influenced by the crisis in Ukraine.

Foreign sales of soybean meal increased 13.7%, reaching US$ 964.76 million, a record value for July. In addition, there was an expansion of 2.3% in quantity, which also got a record volume.

In the case of soybean oil, Brazilian exports totaled US$ 351.41 million in July 2022 (+135.4%).

Beef and chicken meat

The meat sector was also influenced by the increase in average export prices (+20.4%). July exports were a record, with US$ 2.37 billion (+16.9%), even with a drop of 2.9% in the total volume exported.

The main product exported by Brazil was beef, with record sales of US$ 1.21 billion (+20%) and a growth rate similar to average prices (+19.5%).

See below the track record of Brazilian beef exports from January 2019 to June 2022. The chart below was done using data gathered by Datamar’s business intelligence team in the platform DataLiner.

Beef exports from Brazil | Jan 2019 – Jun 2022 | WTMT

Source: DataLiner (click here to request a demo)

The volume exported registered a slight increase of 0.4% in the comparison between July 2021 and July 2022. The slower pace of price growth compared to the previous months of 2022 to 2021 was justified by the greater availability of animal protein for export among the world’s leading exporters compared to international demand.

Chicken meat was another product that saw an increase in overseas sales. Despite a 4.4% decrease in exports, the average sales price increased by 26.9%. As a result, for the month of July, exports achieved a new high of US$ 875.15 million (+21.3%).

See below the track record of the volume of chicken meat exported by Brazil from January 2019 to June 2022. The information below was gathered by Datamar’s business intelligence team through the platform DataLiner.

Chicken meat exports | Jan 2019 – Jun 2022 | WTMT

Source: DataLiner (click here to request a demo)

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