Brazilian soybean exports reach new record in April 2023

In April this year, Brazilian soybean exports reached the mark of 14,34 million tons, a significant increase compared to the 13,24 million tons exported in the previous month. Compared to the same period last year, when 11,47 million tons were exported, there was growth. These numbers demonstrate the strength and competitiveness of Brazilian agribusiness in the international market.

Brazil, the world's largest soybean producer, is facing a logistical challenge due to its total storage capacity being exceeded. The expectation is that the country's grain harvest in the 2022/23 season will be so abundant that existing storage systems will not be sufficient to accommodate the entire production. This situation suggests the need for investment in infrastructure to ensure the efficient flow of agricultural products.

In addition to the success in soybean production, Brazil is also forecasting an increase in the coffee harvest for this year. A significant increase in production is expected compared to last year, which further strengthens the country's position as one of the world's main suppliers of this commodity. Likewise, sugarcane production is also expected to be at a record high, with an emphasis on sugar production, due to low global stocks and growing demand.

According to data released by Conab, sugar manufacturing in Brazil is expected to reach 38,77 million tons, being the second highest ever recorded in history, second only to the 2020/21 season, when it reached 41,25 million tons. . The possibility of the El Niño climate phenomenon reducing monsoon rains in Asia, harming sugarcane production in countries such as India and Thailand, could boost world prices for products from the sugar complex.

However, these positive perspectives for Brazilian agribusiness are not without challenges. The combination of increased production with insufficient logistics infrastructure, including warehouses, highways, ports and railways, is expected to generate intense competition and pressure on export premiums, reducing gains for the country's various production chains. This situation is expected especially for the second half of this year.

In the corn sector, Brazilian exports recorded a sharp drop in April, with just 0,47 million tons exported, compared to the 1,34 million tons exported in March. This decline was influenced by the decrease in premiums and prices for Brazilian corn, together with the momentary lack of demand. However, Conab increased its estimates for both exports (48 million tons) and domestic demand (79,3 million tons) of corn, following this year's increase in production.

In addition, markets are paying attention to negotiations in the Black Sea grain corridor, following the intensification of tensions between Russia and Ukraine. This situation could have impacts on international corn routes and prices, generating caution and uncertainty for Brazilian producers and exporters.

About logistical alternatives, read: Amaggi, Bunge, Cargill, LDC and Sartco intend to create a transport company.