June 1, 2023
Brazil's soybean exports to the US surge as prices attract importers
Recent shipping data revealed that Brazil is exporting 178,800 tonnes of soybeans to buyers in the US, highlighting the appeal of the South American country's soybean prices even for importers in the second-largest producing nation, Nasdaq reported.
According to shipping agency Williams' data from May 30, three vessels carrying Brazilian soybeans will set sail from ports in northern Brazil between June 4 and June 11. Two additional vessels departed Brazilian ports last week.
These purchases signify Brazil's growing prominence as an agricultural exporter, surpassing the US in soybean and corn exports.
The buyers of the Brazilian soybeans are identified as Perdue Farms, a chicken producer, and Archer-Daniels-Midland Co, a global grains merchant. The vessel named Floriana, scheduled to transport 32,000 tonnes of Brazilian soybeans, will be loaded at a Cargill terminal at the port of Santarem.
Scott Fredericksen, president of Perdue AgriBusiness, a division of Perdue Farms, said that imports are a small but important element of their supply chain, adding that they are looking at several countries, primarily in South America, to fill the gap in what's grown domestically as recent soybean crush rates in the US are at a record high.
Cargill and ADM have not yet responded to requests for comment regarding the shipments.
If the 178,800 tonnes of Brazilian soybeans make their way to the US, it will be the largest import volume since 2014 when imports reached a record 1.048 million tonnes, based on US Census Bureau trade data.
Analysts have highlighted the favourable economics of US soybean imports, given that Brazil is expected to harvest over 154 million tonnes of soybeans this season, marking its largest crop ever.
In a note to clients, John Stewart and Associates stated that the cost of Brazilian grain, excluding freight, is US$1.09 per bushel cheaper than US beans for near-term shipment.
- Nasdaq
