April 27, 2023

 

Record soybean crop in Brazil leads to increased US imports

The US is buying more soybeans from Brazil after a drop in prices there due to abundant local supplies, with two ships carrying a total of 79,150 tonnes of Brazilian product on the way to the US in the coming days, Nasdaq reported.

 

According to Cargonave shipping data, the CS Satira, chartered by The Andersons, is scheduled to set sail on April 30 carrying 33,000 tonnes of Brazilian soybeans from the port of Santarem to the US.

 

The data also showed charterer Bunge Ltd will ship a larger cargo of 46,150 tonnes from the port of Itacoatiara on April 25.

 

The movement of soybeans from Brazil's record harvest to the US may reduce the prices paid to US farmers who have soybeans in storage bins since the autumn.

 

Michael Cordonnier, president of the consultancy Soybean and Corn Adviser, said more shipments are expected in the coming months as a result of the price difference between US and Brazilian supplies.

 

Recent improvements in Brazil's Amazon river ports and some facilities on the country's northern coast have also helped to facilitate shipments to the United States.

 

Brazil, the world's largest soybean producer and exporter, is also expected to sell massive amounts of soybeans to Argentina in 2023 to compensate for a shortfall in supplies caused by a severe drought.

 

Cargonave data showed at least 15 ships chartered by global grain traders have sailed or will depart from various Brazilian ports carrying a total of 475,689 tonnes of Brazilian soybeans to Argentina.

 

Brazilian soybean port premiums have dropped to historic lows due to lukewarm Chinese demand and a record soybean crop of more than 153 million tonnes.

 

-      Nasdaq