South America Calling
Alastair Stewart South America Correspondent

Friday 06/13/14

Soybeans Leads Brazilian Exports in 2014

Soybeans have been the single biggest export item on the Brazilian trade balance so far this year, underlining the growing importance of the oilseed to the local economy.

Bean exports rose 22% on the year to $12.6 billion in the first five months of 2014, beating the traditional No. 1 item, iron ore, which accumulated revenues of $11.7 billion.

When soymeal and soyoil shipments are added to the bean export number, revenues reached $15.6 billion or 19% higher than the year before

Brazil's excellent first-half export performance has been fueled by a record crop, an improvement in port logistics and firm demand from China.

Buoyant first-half soybean prices have contrasted with weakness in quotes for iron ore, which is also principally shipped to China.

As Brazil goes deeper into the inter-harvest period, soybean shipments will subside and iron ore will likely end 2014 as the No. 1 shipment.

But, at a time when Brazil's trade balance is under strain, the industry becomes more and more important to the economy.

Without the $83 billion that agribusiness contributed to the 2013 trade balance, Brazil would have run an $80 billion trade deficit last year. Of that total, Brazilian soy complex exports totaled $31 billion.

The soybean has been transformational in the south and center-western Brazil over the last thirty years. It is now having a significant impact on the wider Brazilian economy.

The opening of new export corridors through northern ports over the next few years will certainly allow grain shipments to grow. However, a real boost to development would come from the expansion of Brazil's world-leading animal protein sector into the center-west. Despite the abundance of raw material in this region, the industry, for the moment at least, remains firmly based in the south.

(AG)

Posted at 2:34PM CDT 06/13/14
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
March  2015
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31            
Subscribe to South America Calling RSS
Recent Blog Posts
  • Blockades, Weak Real Dictate Brazil Soy Market
  • Brazil's Soy Harvest 29% Complete
  • Brazil Trucker Protest Continues Through Ninth Day
  • Agroconsult Raises Brazil Soy View to 94.7 MMT
  • Brazil Truckers, Government Reach Agreement; Blockades Continue
  • Truckers Block Mato Grosso Soy Routes
  • Rains Hinder Brazil's Soybean Harvest
  • Dollar Bump Fails to Draw Soy Farms to Market
  • Brazil Set To Raise Ethanol Mix
  • Argentine Farms Look To Paraguay
  • Brazil's Antitrust Body Approves Cosan/ALL Deal
  • Brazil's Ag Ministry Lowers Soy, 2nd Corn View
  • Brazil's Abiove Raises Soybean View to 92.3 MMT
  • Logistics Monopoly Concerns Brazil's Soy Industry
  • AgRural Slashes Brazil Soy View to 91.9 MMT
  • Brazil Soy Harvest 3% Done, Dryness a Concern
  • Sluggish Brazil Eases Pressure on Freight
  • Agroconsult Lowers Brazil Soy View, Situation Delicate
  • Brazil Breaks Crop Insurance Promise
  • Brazil's Center-West, Southeast Soy Farmers Wait For Rain