Sep 04, 2015
Brazil's 2015 Soybean Exports have already Surpassed all of 2014
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The declining value of the Brazilian currency is an indication of the troubled economic situation in Brazil, but it has led to a surge in Brazilian agricultural exports by making the products more competitive in world markets. The Brazilian real has been steadily losing ground compared to the dollar since early in 2015 and it is currently trading at approximately 3.8 reals per dollar, which is the weakest it has been since 2002. The currency has devalued over 40% since the first of the year and approximately 70% over the last twelve months.
The weaker currency has made Brazil's soybean exports more competitive and during the first eight months of 2015, the country has already exported more soybeans than during all of 2014. According to the Export Secretary (Secex) of the Ministry of Industrial Development and Commerce (MDIC), during the first eight months of 2015, Brazil has exported 45.8 million tons of soybeans which is already more than the 45.7 million tons exported in all of 2014.
During August, Brazil exported 5.1 million tons of soybeans compared to 8.4 million in July and 9.8 million in June, so the export pace is declining, but there still soybeans left to export after farmers produced a record large soybean crop in 2014/15. Even though the soybean exports are tapering off, the ports in Brazil are staying busy be ramping up their corn exports. Brazilian farmers also produced a record large safrinha corn crop and that corn is now making its way to export facilities and Brazil is expected to set new records for corn exports as well.
Since soybean prices are lower this year compared to last year, the total receipts from the soybean exports have declined. During the first eight months of this this year, soybean export sales have totaled US$ 17.7 billion compared to US$ 21.4 billion for the same period in 2014.
It is not just grain exports being aided by the weaker currency, poultry exports are also surging. During the first eight months of 2015, Brazil's poultry exports have totaled 2.8 million tons or 5.5% more than during the same period in 2014.