Safras & Mercado reduces soybean export forecast though crushing margins remains stable

On Monday, March 14, the consultancy firm Safras & Mercado reduced its estimate of soybean exports from Brazil to 78 million tonnes, the second cut in the country’s estimated shipments in less than a month.

Even before Safras addressed the consequences of the drought on output, the firm had reduced its prediction from 85.5 million tonnes to 85.5 million tonnes as of February 25.

Once again, the analytics firm maintained its 2022 soybean processing forecast for Brazil, estimated at 47.5 million tonnes, an increase in exports and in the domestic consumption of soy bran.

However, soybean exports should fall 9% compared to last season when the largest global producer and exporter of the oilseed achieved a record. Crushing, in turn, is expected to grow 2% year on year.

According to the consultancy, the country shall produce 36.55 million tonnes of soybean meal, a 3% increase, while exports will climb by 6% and domestic consumption will increase by 2%.

Safras said it works with an increase in soybean oil production of 3%, to 9.65 million tons, despite a 2% lower domestic consumption, pressured by the drop in use for biodiesel. On the other hand, Exports should advance to 1.7 million tons, up 3%.

Ending stocks of soybeans are expected to decline by 52% to 2.77 million tonnes, despite an increase in imports to 1 million tonnes.

Source: Investing

To read the full original article, please go to: https://br.investing.com/news/economy/safras-faz-novo-corte-na-exportacao-de-soja-do-brasil-mantem-esmagamento-982219

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