Record soybean harvest in Brazil contributes to positive trade balance

RIO DE JANEIRO, BRAZIL – The production of almost 136 million tons of soybeans and the rise in international prices should continue to impact exports positively.

According to the National Confederation of Agriculture (CNA), record soybean exports positively impacted the trade balance in April. They should continue to post positive results in May. According to data from the Foreign Trade Secretariat of the Ministry of Economic, total Brazilian export revenue reached R$26.4 (US$4.9) billion in April, a 50.5% increase over the same period last year.

Last month’s trade balance closed with a positive balance of R$10.34 billion, representing an increase of almost 70% compared to April 2020. According to the Secretariat of Foreign Trade, the record 17 million tons of soybean exports played an important role in this positive result.

Brazil should harvest its largest grain harvest in history this year: 135.8 million tons, 10 million more tons than in 2020. “In April, a record volume was shipped,” says Fábio Carneiro, technical advisor to CNA’s National Commission for Cereals, Fibers, and Oilseeds. “There were delays in planting and excessive rains, which concentrated a good part of exports last month.”

The price increase in the international market is another factor contributing to the positive results of the trade balance. Carneiro recalls that the soybean quoted price reached US$15 in April, against US$9 last year. “As the market works with pre-fixed contracts, most producers will not get the full price,” says Carneiro. Shipments are expected to be a little lower this month due to the high concentration in April, although they should remain representative.