Mar 07, 2017

Brazil Exports Record Soy in February, but Below Expectations

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

During the month of February, Brazil exported a record 3.51 million tons of soybeans which was up 72% compared to a year earlier, but it was short of what had been expected. The line-up for February had expected to be 5.7 million tons, but wet weather delayed some of the soybean harvest and logistical problems delayed soybean deliveries to especially the northern ports. Combining January and February, Brazil exported 4.4 million tons of soybeans.

Brazilian grain companies are reporting difficulties in sourcing enough soybeans to meet the export demand. Reuters is reporting that data from Williams Maritime indicate that there is currently 6.26 million tons of soybeans in the line-up compared to 10.64 million tons a year ago.

The first few days of March have also been very wet at the Port of Paranagua. Thus far in March, the city of Paranagua has received 248 mm of rainfall (10 inches) and the average for the month is 268 mm (10.7 inches). So they have received a month's worth of rain in only the first five days of the month. Persistent rainfall can result in loading delays at the Port of Paranagua.

It is estimated that 24% of Brazil's soybean and corn exports in 2017 will go out of the "Northern Arc" of ports and that 74% will go out of traditional southern ports.