December 7, 2020

US soybean cargo is being unloaded at Paranagua port, Brazil

A spokeswoman for the Paranagua port authority in Brazil said 35,000 tonnes of soybeans from the United States, a rare cargo import into Brazil, was being unloaded at the Paranagua port after obtaining all regulatory permissions, Reuters reported.

Brazil, a global soybean producer and exporter, had sold the bulk of their soybeans to China that there was little supply left domestically. Brazil's weak exchange rate played a part in this year's increased soybean exports.

Luiz Fernando Garcia, chief executive of the company that operates the port, said soybean's global prices and favourable exchange rate meant that nearly all Brazilian soybeans were exported, so it became necessary to import soybeans to meet demand in the country.

6,000 tonnes of soybean daily will be unloaded by the Louis Dreyfus Co chartered Discoverer vessel. The company did not disclose the commercial transaction value of the cargo.

Farmers in Brazil are currently planting soy crop for the 2020/2021 season, which is expected to be harvested in mid-January.

For the upcoming crop season, the Brazilian government projects the country to produce 135 million tonnes of soybean. However, analysts said supplies are expected to remain tight due to dry weather in major planting areas and high demand from China.

Brazil imported 625,000 tonnes of soybeans between January to October 2020, based on government data collected by the Paranagua port authority. This is the highest total of imported soybeans since 2003, with most of the supply coming from Paraguay.

Brazil temporarily suspended soybean import duties from countries outside the Mercosur trade bloc on October 16.

The Paranagua port authority said there has been no inbound soy cargos at the port in the last 10 years.

- Reuters