Soy exports grow in Brazil amid the absence of Argentina

Brazilian soybean exports reached 5,2 million tons in February 2023, an increase of 6,2 times compared to the previous month, according to data from Conab. The absence of Argentina, an important global player in soybean meal and oil exports, contributed to this increase, generating greater demand for Brazilian derivatives and boosting national exports.

On the other hand, the volume of corn exports reached 2,28 million tons in February, a significant drop compared to the 6,17 million tons recorded in January. This decline can be attributed to the strengthening of domestic demand for the cereal, especially in corn ethanol production, feedlots and animal protein production. The National Corn Ethanol Union (Unem) estimates that biofuel production will reach 6 billion liters in 2023.

Adverse weather conditions in the main producing states caused a strong reduction in the first corn harvest. The second corn harvest, which is heading towards a strong advance in estimates, suffers from the delay in the soybean harvest, harming planting in states such as Paraná, Mato Grosso do Sul and Tocantins. Corn planting in Maranhão and Piauí, however, is progressing normally and with good conditions for crop development.

The ports of Arco Norte increased their participation in Brazilian exports, reaching 39,7% in February 2023, while the port of Santos transported 39,1% of the country's exports. The states of Mato Grosso, Goiás, Rio Grande do Sul and Minas Gerais were the main suppliers of cargo for export.

The soybean harvest also faces climate challenges, with excessive rains in Paraná and drought in Rio Grande do Sul, affecting production. However, in other states, such as Mato Grosso, Goiás, Minas Gerais, Tocantins, Maranhão and Piauí, harvests are progressing at a normal pace or with good conditions.

The reduction in soybean supply in Argentina, due to high temperatures and water deficit, could favor Brazilian participation in the international market, especially considering the expectation of an increase in Brazilian soybean production by 20,6% this season, according to Conab .