April 9, 2014

Brazil's soy exports expected to fall in April

Brazil's soy exports are forecast to fall this month after China canceled purchases, making it the first time in 10 years that shipments in April fall short of deliveries in March, industry researcher Oil World said.

Brazil is forecast to ship 5.5 million tonnes of soy in April, compared to 6.23 million tonnes in March, Hamburg-based Oil World said in the report.

By comparison, the country's soy exports totalled 7.15 million tonnes in April 2013, up from 3.54 million tonnes in March the same year.

China, the top buyer of soy from the US and Brazil, has been importing US soy at a record pace. USDA reported on March 31 that stocks as of March 1 was reduced to 27 million tonnes from 27.16 million tonnes a year earlier, the lowest date recorded since 2004.

"Brazilian exports of soybeans are expected to decline contra-seasonally in April," Oil World wrote in the report. "This is the result of the recent Chinese cancellations and the prospective reduction in Brazilian shipments to China."

April soy exports from Argentina are predicted to rise to 1.3 million tonnes from 1.14 million tonnes a year ago, while shipments from Uruguay may increase to 800,000 tonnes from 780,000 tonnes in April 2013.

The outlook for Brazil's soy harvest was raised to 86.2 million tonnes from 84.5 million tonnes forecast two weeks ago.