Brazil Soybean Export Lineup up 97% From Year Ago

(Agriculture.com) –   The lineup of vessels expected to load soybeans at Brazilian ports over the next month shows a spike in shipments to around twice the level of a year ago due to a speedy harvest and strong global demand.

Port schedules suggest around 4.39 million tonnes of soybean exports in February and early March, 97 percent more than a year ago, according to data from shipping agency Wilson Sons compiled by Reuters on Tuesday.

“The lineup reflects strong international demand, combined with a faster harvest and smooth port operations,” said Steve Cachia, senior analyst at Brazilian brokerage Cerealpar and consultant for Kordin Grain Terminal, in Malta.

Soybeans have also avoided competition from corn for port capacity, which slowed shipments early last year.

Preliminary customs data showed soybean loadings in Brazil during January rose 51 percent from a year earlier, while corn shipments were down 73 percent.

Brazilian farmers have harvested more than 4 percent of planted area, according to Brazilian consultant AgRural, slightly ahead of last year.

“The soybean harvest is a little ahead of usual, meeting with strong interest from external buyers,” said Thiago Pierry, trade analyst at Wilson Sons shipping agency.

The country is expected to produce a record crop of 101.7 million tonnes in 2017, with exports projected at a record 58 million tonnes, according to industry group Abiove.

Despite higher volumes, logistics should not be a problem this season, as truck freight is abundant and new terminals along the coast are ramping up shipments.

Brazil is the world’s largest soybean exporter, and international markets rely on its exports as the supply of U.S. soybeans fades at this time of year.

CORN

Unlike soybeans, the corn lineup for February is down 88 percent from a year ago to 207,200 tonnes.

“Traders do not have large corn stocks, as many sold their supplies on the domestic market in 2016,” said Aedson Pereira, a grains analyst at IEG FNP.

“Currently, high local corn prices are blocking sales abroad. The new summer harvest is not enough to cool down prices,” Pereira said.

Analysts say Brazil’s corn exports should recover only in the second half of the year, when the winter crop is available.