International prices drive record exports of US$ 14 billion in July

In July, Brazilian agribusiness exports were impacted by the increase in average export prices, which grew 24,8%. As a result, sales to the foreign market reached a record value for the month: US$ 14,28 billion (+26,8% compared to July/2021). The quantum index rose 1,6%. The share of agribusiness reached 47,7% of total national exports.

The explanation for the increase in the quantum index is mainly related to the increase in the volume of corn exported in July, which reached more than 2 million tons in absolute terms. Other highlights were soy complex products (grains, bran and oil) and beef and chicken.

“Although exports reached a record for the months of July, this is the lowest value in the last four months of 2022. In comparison with exports in June of this year (the immediately previous month), for example, there was a slowdown of 8,6 % in values, resulting from the 2,2% drop in the compared price index, and 6,6% in exported volumes”, explains the Secretariat of Commerce and International Relations of the Ministry of Agriculture, Livestock and Supply (Mapa).

Imports of agribusiness products totaled US$1,48 billion (+19,3%), also influenced by average prices that grew 16,1%.

Corn

Foreign corn sales rose from 1,99 million tons in July/2021 to 4,12 million tons in July/2022 (+106,9%). This volume is surpassed only by exports in 2019, which reached 5,93 million tons in the same month. 

As for the value exported, at US$ 1,15 billion (+189,7%), this was a record for July, due to the rise in average cereal export prices, 40% higher compared to the same month last year. 

Iran was the largest importer of Brazilian corn in July this year, purchasing 832 thousand tons or the equivalent of US$258,93 million (+308,4%). Next come Colombia (US$118,42 million; +2.416,7%) and Japan (US$102,97 million; +34,3%).

The high availability of corn, announced by Conab in July this year, with the first and second harvests in the harvest phase, and the third harvest expected to be completed, creates a favorable scenario for a greater pace of exports in the second half of the year, whose internal demand forecast for the year is 77,19 million tons.

soy complex

Sales abroad of soy complex products reached US$6,03 billion in July/2022 (+21%). The rise in prices of the sector's products (+33,5% on average) was responsible for the increase in exports, as the volume exported fell by 9,4%. 

This drop in volume occurred in soybean exports, which went from 8,67 million tons in July 2021 to 7,52 million tons in July 2022 (-13,3%). With production of 14,11 million tons lower than the 2020/2021 harvest (-10,2%), the 2021/2022 harvest made fewer grains available for export this year. 

Even so, soybean grain exports reached a record value for the months of July, US$4,71 billion (+18,2%), due to high average prices (+36,3%), also a reflection of lower availability for international supply. 

China increased its participation in acquisitions, going from 66,5% of the volume exported by Brazil in July/2021 to 68,8% of the volume in July/2022 (5,2 million tons; -10,3%).

The other two products in the sector, however, showed an increase in the quantity exported, which was stimulated by the high prices charged on the international market, given the current demand and supply conditions, mainly affected by the conflict in Ukraine (sunflower oil and meal). 

Foreign sales of soybean meal increased 13,7%, reaching US$964,76 million, a record value for the months of July. There was a 2,3% expansion in quantity, which also reached a record volume. 

In the case of soybean oil, Brazilian exports were US$351,41 million in July 2022 (+135,4%).

Beef and chicken

The meat sector was also influenced by the increase in average export prices (+20,4%). Exports in July were records, with US$2,37 billion (+16,9%), even with a 2,9% drop in total exported volume. 

The main product exported by Brazil was beef, with record sales of US$ 1,21 billion (+20%) and a growth rate similar to that of average prices (+19,5%). 

The volume exported registered a small increase of 0,4% in the comparison between July 2021 and July 2022. The lower rate of price growth compared to the previous months of 2022 in relation to 2021, was justified by the greater availability of protein for export in main world exporters compared to international demand.

Another product in the sector with an increase in foreign sales was chicken meat. Although the quantity exported decreased by 4,4%, the average selling price increased by 26,9%. Exports reached a record of US$875,15 million (+21,3%) for the month of July.