Soy complex to advance Brazil's trade surplus

Brazil's trade surplus is likely to increase in May on heavy shipments of soy, soy products and iron ore, although the trend toward a weak surplus for the full year remains.

 

The May trade surplus should reach about US$2.75 billion, according to analysts.

The figure of US$2.75 billion would be higher than the US$1.28 billion April surplus and slightly above the May 2009 surplus, which amounted to US$2.6 billion.

 

"In May, we saw an increase in exports of soy and iron ore," said Andre Sacconato, an economist at the Tendencias consulting group. Sacconato is expecting a trade surplus of US$3 billion in May.

 

Soy and soy products are experiencing a season rise in shipments as the Brazilian harvest comes on stream. Iron ore shipments are up on rising international demand.

 

For the year as a whole, the trend is for a weak trade surplus. Economists noted that Brazilian imports are growing much faster than exports because of the nation's rapid economic expansion.

 

"The basic scenario continues the same for the rest of this year, with domestic expansion fuelling imports," said Newton Rosa, an economist at the Sulamerica Investimento fund.