Brazilian oilseeds and grain exports are booming. China's purchases of soybeans more than doubled in the first two months of the year, while husk rice overseas sales during February jumped 65% compared to a year ago.
The South American drought that has extended to several Argentine provinces and Brazilian states has also hit hard Paraguay, the world's fourth exporter of soybeans. In effect, crops are suffering and the processing industry is running out of supplies.
With different climate prospects, clearly more positive than last season, Brazil expects to harvest in 2021/22 a new record of some 143,75 million tons of soybeans, according to a survey with information from the main sowing states.
Brazil's National Supply Company, Conab, anticipated forecasts for the coming grains and oilseeds season 2021/22. The soy crop is expected to reach some 141,26 million tons or a 3.9% increase over the current harvest.
United States soybeans climbed to six-year highs this week as weather and export troubles in Argentina outweighed concerns of a new coronavirus strain hitting Britain. Corn and wheat futures traded near even as soybeans supported the grains complex.
Argentine grains inspectors and oilseeds workers started a new wage strike on Wednesday, organizers said in a joint statement, as stalling contract negotiations threatened to interrupt exports from one of the world's main bread baskets.
Brazil soybean imports during November reached 122,000 tons, 20 times more than in November 2019 (6,000 tons). Purchases cost US$ 49.2 million, compared to the US$ 1.9 million spent a year earlier, as the average value of the ton purchased increased from US $328.8 to US$ 402.4, according to the Brazilian Foreign Trade Secretariat, SECEX.
U.S. soybean futures rose for a sixth consecutive session on Friday and hit a four-year high on dry conditions in key South American crop areas and concerns about dwindling U.S. supplies. Corn also gained on strong exports and worries about South American dryness, while wheat ended mixed.
A U.S. grain export terminal near Baton Rouge, Louisiana, is loading about 38,000 tons of U.S. soybeans on a bulk cargo vessel for shipment to Brazil, according to Southport Agencies shipping lineup.
Bloomberg has reported that the United States began selling soybeans to Brazil after the Chamber of Foreign Trade (CAMEX) temporarily suspended import tariffs for corn and soybeans. This is a rare event that can be explained because Brazil has taken the lead in the production and export of the oilseed.