Brazil expected to export nearly 80mn t of soy

Brazil is on pace to export nearly 80mn metric tonnes (t) of soy this year, which would be the second-largest total in history.

The oilseed remains attractive for foreign buyers because of a weaker Brazilian real compared with the US dollar.

Brazilian oilseed crusher association Abiove expects 2020 exports to hit 79.5mn t, up from a 78mn t estimate in June. It would be a 7.3pc increase from 2019 and only 2018, when Brazil exported 83.3mn t thanks to increased Chinese buying during a trade war with the US, would top it.

Brazil's soybean exports this year might generate $26.6bn in revenue, slightly above the $26.1bn last year, Aviove said.

Currency exchange has been contributing to record exports month after month as a weaker real makes commodities more competitive abroad. So far this year, the real has dropped by more than 30pc against the dollar.

In June, Brazil exported 13.8mn t, the government said today. It was a record volume for the month and continued a string of strong export months since March, including an all-time record 16.3mn t in April. Last June, Brazil exported 9mn to t of soy.

In the first half of 2020, Brazil shipped overseas 64mn t of soy.

Despite the pace of exports, Abiove said that supply will be enough to meet either external or internal markets. Soy production in 2020 is pegged at a record of 125mn t by Abiove, up by 3.5pc year-on-year, with crushing totaling 44.5mn t and ending stocks falling to only 669,000t, from 3.3mn t in 2019.

Abiove also forecasts soymeal production at 33.9mn t in 2020, with its exports reaching 16.5mn t and its domestic consumption at 16.7mn t. Soyoil output and exports were estimated at 8.9mn t and 1mn t, respectively, while internal demand is expected to be 8.2mn t.

By José Roberto Gomes