RIO DE JANEIRO, BRAZIL – Brazilian soybean exports are surging, after an initial slower pace due to delays in harvesting. StoneX has revised exports to 85 million tons from the previous figure of 82 million.
“The outlook is for a very favorable global demand, noting that China continues to heavily import soybeans. Furthermore, despite the recent dollar decline, the Brazilian oilseed remains competitive,” explains Ana Luiza Lodi, market intelligence expert.
According to the group’s May revision, the 2020/21 soybean harvest production should reach 135.7 million tons, an increase of 1.3% in relation to the previous number.
The production increase was the result of revised figures for regions that have a slightly later production cycle and were benefited by higher rainfall volumes starting in January. Bahia, Maranhão, Tocantins, Pará and also Minas Gerais, a state where there was also an adjustment in the area, in a harvest encouraged by high prices and very tight stocks.
“This absolutely record result could have been even higher, if it weren’t for the poorer than usual and desired weather in the first months of the cycle,” explains Ana Luiza. States of enormous relevance, such as Mato Grosso and Paraná, experienced a loss of productive potential, with production ending below that recorded in the 2019/20 harvest, despite a larger area.
Source: O Presente Rural