International prices pull record Brazilian exports of US$ 14 billion in July
The highlight was the foreign sales of corn
In July, Brazilian agribusiness exports were impacted by the increase in average export prices, which grew 24.8%. As a result, sales to the foreign market reached a record value for the month: US$ 14.28 billion (+26 .8% compared to July/2021). The quantum index rose 1.6%. The share of agribusiness reached 47.7% of total national exports.
The explanation for the increase in the quantum index is mainly related to the increase in the volume of corn exported in the month of July, which reached more than 2 million tons in absolute terms. Other highlights were products from the soy complex (grains, bran and oil) and beef and chicken.
“Although exports reached a record for the months of July, it is the lowest value of the last four months of 2022. In comparison with exports of June this year (immediately previous month), for example, there was a deceleration of 8.6 % in values, as a result of the 2.2% drop in the price index compared, and 6.6% in exported volumes”, explains the Secretary of Commerce and International Relations of the Ministry of Agriculture, Livestock and Supply (Mapa).
Imports of agribusiness products totaled US$ 1.48 billion (+19.3%), also influenced by average prices, which grew 16.1%.
Corn
Foreign corn sales rose from 1.99 million tons in July/2021 to 4.12 million tons in July/2022 (+106.9%). This volume is only surpassed by exports in 2019, which reached 5.93 million tons in the same month.
As for the exported value, of US$ 1.15 billion (+189.7%), this was a record for July, due to the high average export prices of the cereal, 40% higher compared to the same month last year.
Iran was the biggest importer of Brazilian corn in July this year, with the acquisition of 832 thousand tons or the equivalent of US$ 258.93 million (+308.4%). Then come Colombia (US$ 118.42 million; +2,416.7%) and Japan (US$ 102.97 million; +34.3%).
The high availability of corn, announced by Conab in July this year, with the first and second harvests in the harvesting phase, and the third harvest with planting expected to be completed, create a favorable scenario for a higher pace of exports in the second semester, whose domestic demand forecast for the year is 77.19 million tons.
Soy complex
Sales abroad of products from the soy complex reached US$ 6.03 billion in July/2022 (+21%). The rise in the prices of the sector’s products (+33.5% on average) was responsible for the rise in exports, as the volume exported fell by 9.4%.
This volume drop occurred in soybean exports, which went from 8.67 million tons in July 2021 to 7.52 million tons in July 2022 (-13.3%). With production of 14.11 million tons lower than the 2020/2021 harvest (-10.2%), the 2021/2022 harvest made less grain available for export this year.
Even so, soybean exports reached a record value for the month of July, US$ 4.71 billion (+18.2%), due to high average prices (+36.3%), also reflecting the lower availability for the international offer.
China increased its participation in acquisitions, from 66.5% of the volume exported by Brazil in July/2021 to 68.8% of the volume in July/2022 (5.2 million tons; -10.3%).
The other two products in the sector, however, showed an increase in exported quantity, which was stimulated by the high prices practiced in the international market, given the current demand and supply conditions, mainly affected by the conflict in Ukraine (sunflower oil and meal).
Foreign sales of soybean meal increased 13.7%, reaching US$ 964.76 million, a record value for the months of July. There was an expansion of 2.3% in quantity, which also reached a record volume.
In the case of soybean oil, Brazilian exports were US$ 351.41 million in July 2022 (+135.4%).
Beef and chicken meat
The meat sector was also influenced by the increase in average export prices (+20.4%). July exports were a record, with US$ 2.37 billion (+16.9%), even with a drop of 2.9% in the total volume exported.
The main product exported by Brazil was beef, with record sales of US$ 1.21 billion (+20%) and a growth rate similar to average prices (+19.5%).
The volume exported registered a small increase of 0.4% in the comparison between July 2021 and July 2022. The slower pace of price growth compared to the previous months of 2022 in relation to 2021 was justified by the greater availability of protein for export in world’s leading exporters compared to international demand.
Another product of the sector with an increase in foreign sales was chicken meat. Although the quantity exported registered a reduction of 4.4%, the average sales price rose 26.9%. Exports reached a record US$ 875.15 million (+21.3%) for the month of July.
