South America Calling
Alastair Stewart South America Correspondent

Wednesday 08/20/14

Brazil's Industry Raises Soybean Export View Amid High Premiums

High soybean export premiums have led to extremely strong shipments over the last couple of months, prompting the Brazilian industry to raise its 2014 export number once again.

This week, Abiove, Brazil's soy crusher association, raised its 2014 soybean forecast to a record 45 million metric tons (mmt), 1 mmt higher than last month's estimate and substantially higher than the 42.8 mmt registered in 2013.

Brazil shipped 37.8 mmt in the first seven months of 2014, up 19% on last year, and exports are expected to remain brisk through October when the U.S. crop becomes available.

Exporters have drawn out stocks amid declining international prices by offering substantial premiums on top of Chicago futures.

The premium for delivery at Paranagua port in September is currently $2.50 per bushel, much higher than the $1.05 per bushel offered at the same time last year.

As a result, Brazilian farmers have been partially shielded from the slide in soybean quotes.

To accommodate the higher soybean export projection, Abiove lowered its 2014 processing forecast. It estimated Brazilian crushing will total 36.8 mmt, down from last month's estimate of 37 mmt but higher than the 36.2 mmt crushed last year on a larger crop.

Brazil produced 86.5 mmt of soybean in 2013-14, up 6% on the year before, according to Abiove.

Brazil will see imports rise to 500,000 metric tons (mt) from 283 mt. The soybeans largely come from the growing number of farms just over the border in Paraguay.

(AG)

Posted at 9:56AM CDT 08/20/14
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
September  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         
Subscribe to South America Calling RSS
Recent Blog Posts
  • Brazilian Crop Chemicals Market to Remain Firm
  • Brazil GMO Planting On The Rise
  • Upturn in Brazilian Fertilizer Demand
  • Brazilian Fertilizer Sales Stable in July
  • Floods Threaten Argentine Wheat Crop
  • Argentine Farmers Plant Defensively
  • Brazil 2015-16 Cotton Area to be Lowest in 13 Years
  • Brazil's Crisis and Forex
  • Brazilian Soy Industry Nervous About Chinese Moves
  • Brazil Focuses on Integration
  • Brazil's Corn Market Sees Busy July
  • Brazil to Plant More Soy In 2015-16
  • Brazil Intacta Royalty Controversy
  • Brazil's Soy Industry Raises Soybean Export View
  • Brazilian Chicken Exports Strong
  • Brazilian Soy Rust Threat
  • Argentine Farmers Must Declare Soy Seed Origin
  • Argentina to Plant Less Wheat
  • Brazil To Set New Corn Export Record In 2015
  • The Debate Over Brazilian Soybean Area