Brazil soybean exports on pace to reach record

Brazil soybean exports on pace to reach record

Chamber Articles Category: Agribusiness Post Date: 07/14/17 Source: World Grain By: Holly Demaree
Article Content

Higher soybean supplies available for export, strong demand from China and weakening of the local currency have Brazil’s soybean exports on pace to hit a record of 62 million tonnes for market year 2016-17, according to a July 5 report by the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS).

“With the domestic prices in the last few months, farmers have been waiting for market signals triggered by the progress of the U.S. crop or political developments in Brazil,” the USDA noted in its report. “As the real has depreciated in the last couple of months, sales picked up and strong exports are expected in the next few months. Brazil already exported 33.9 million tonnes, about 11.5% higher compared to the same period last year.”

The report forecasts the 2017-18 soybean production at 105 million tonnes, down about 8% from production of 114 million tonnes in 2016-17.

“The 2016-17 soybean season in Brazil was almost perfect in terms of production,” the USDA said. “The low incidence of pests along the crop cycle, good rainfall distribution in most of the country, and increased investment in technology, contributed to record yields by a large margin.”
Read Full Article