Soybean exports from Brazil in May reach 2nd highest volume ever

Brazilian soybean exports reached a total of 15.6 million tonnes in May, marking the second-highest monthly export volume in history, according to data released by the Foreign Trade Secretariat (Secex) on June 1st. This figure is surpassed only by the record shipments seen in April 2021.

The surge in Brazilian oilseed exports can be attributed to a combination of factors. Firstly, the country experienced a record harvest this year. Additionally, there is strong international demand for soybeans that extends beyond China, the largest consumer. Even the United States, the world’s second-largest soybean producer and exporter, is turning to Brazilian ports for the product, with the abundant harvest in Brazil exerting downward pressure on prices and attracting buyers.

Furthermore, Brazil is experiencing increased demand from Argentina, where the crop suffered significant losses due to drought. Argentina, which has a substantial processing industry, is importing more oilseeds this season to fulfill its buyers’ needs for soybean meal and oil.

Brazilian soybean production has grown by an impressive 23.3% this year, reaching 154.8 million tonnes, according to data from state-owned supply company Conab. This substantial increase has made it possible to facilitate large-scale shipments.

Secex reports that exports from Brazil have increased by approximately 5 million tonnes compared to May of the previous year, following the remarkable volumes in April (14.3 million tonnes). While May’s export volume falls behind the record set in April 2021 (16.1 million tonnes), it still remains significant.

Market participants have also noted Brazil’s lack of storage capacity as a contributing factor to the large shipments. Due to insufficient silo capacity, many producers cannot store the product and therefore opt to export it immediately, even if they may not achieve the best prices.

Market expectations indicate that soybean exports from Brazil will surpass 90 million tonnes this year, reaching a historic level.

Another notable highlight in Brazil’s agricultural exports for May was sugar. Sugar shipments increased by almost 1 million tonnes compared to the same month last year, totaling 2.47 million tonnes. This volume also represents the highest monthly shipment in 2023.

With a significant increase in production projected for this year, the export of sugar from Brazil, the world’s largest exporter of the commodity, is expected to gain momentum in the coming months, in line with the progress of the crop in the country’s center-south region.

Source: Money Times

To read the original news report, see: https://www.moneytimes.com.br/exportacao-de-soja-do-brasil-em-maio-atingiu-2o-maior-volume-da-historia-diz-secex/

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