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July 13, 2020

Brazil's Agricultural Exports Soared in June to Record Levels

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

During the month of June, Brazil set a new record for agricultural exports of US$ 10.17 billion according to a report from the Brazilian Minister of Agriculture last Friday. This represented an increase of 24.5% compared to June 2019. During the month of June, agricultural exports accounted for 58.6% of Brazil's exports compared to 44.4% a year earlier.

The higher export totals were driven by primarily three commodities - soybeans, sugar, and meats. The record exports were driven by a devalued Brazilian currency compared to the U.S. dollar and strong demand from China.

Soybeans were the leading export in June of 2020 totaling 13.8 million tons, which was up 60.8% compared to June of 2019. The value of Brazil's soybean exports during June totaled US$ 5.42 billion, which was up 53.4% compared to June of 2019.

China accounted for 70% of Brazil's soybean exports during the month of June and China was also the main destination for beef and pork exports during June. China's purchases of Brazilian beef and port increased 150% during the first half of 2020. In fact, China was responsible for 65% of the increased value of Brazil's agricultural exports in June compared to June of 2019.

In addition to soybeans and meats, sugar exports were also up significantly in June. During the month of June, Brazil exported almost 3 million tons of sugar, which was up 94.8% compared to last June. The value of Brazil's sugar exports during June totaled US$ 810.8 million, which was up 80.4% compared to June of 2019.

Due to the reduced demand for ethanol caused by the Covid-19 pandemic, many sugar mills in Brazil, adjusted their production to produce less ethanol and more sugar. The demand for Brazilian sugar surged in June due to reduced production worldwide and a favorable exchange rate. The demand for sugar was so strong that it led to long lines of vessels at Brazilian ports waiting to load Brazilian sugar.