Nov 06, 2015
Ag Accounts for 32.3% of all Brazilian Exports thus far in 2015
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
When a country's currency devalues, exports become cheaper and imports become more expensive. The Brazilian currency has devalued approximately 40% compared to the dollar since the first of the year and as a result, Brazilian agricultural exports have surged while Brazilian imports have declined.
The Brazilian Export Ministry reported that during the first ten months of 2015, Brazil had an export surplus of US$ 12.2 billion compared to the same period in 2014 when there was a deficit of US$ 1.9 billion. Most of that surplus was the result of surging agricultural exports stimulated by the weak Brazilian currency.
During the first ten months of 2015, Brazilian exports are up 16.4% while Brazilian imports are down 23%. The Brazilian Agriculture and Livestock Confederation (CAN) attributes the export surplus to agricultural exports.
China has been the number one destination for Brazilian exports in 2015 accounting for 19.6% of Brazil's total exports. In second place is the European Union at 17.8% followed by the United States at 12.7% and Argentina at 6.8%.
It is no surprise that the soybean complex is by far the leader in Brazilian agricultural exports accounting for 16% of Brazil's total exports during the first ten months of 2015. Soybean exports through October have already surpassed soybean exports for all of 2014, which itself set a new record. Total Brazilian corn exports are also expected to set a new record in 2015, but the corn export season may not end until January or February of 2016.
Soybeans have accounted for US$ 20.2 billion in exports during the first ten months of the year followed by poultry at US$ 5.2 billion, raw sugar at US$ 4.7 billion, coffee at US$ 4.6 billion, beef at US$ 3.8 billion, corn at US$ 3.1 billion, tobacco at US$ 1.9 billion, refined sugar at US$ 1.4 billion, and pork at US$ 0.97 billion. Those eight products, plus the soybean complex, have accounted for 32.3% of all of Brazil's exports thus far in 2015.