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June 8, 2012

Brazil Exports a Record Amount of Soybeans in May

The 2011/12 soybean crop in Brazil continues to be sold and exported at a record pace. According to the Ministry of Industrial Development and Exports, the Brazilian soybean exports in May totaled 7.2 million tons, which surpassed the prior record of 6.1 million tons of exports in June of 2009. The May exports were 37% higher than in May or 2011 when soybean exports totaled 5.3 million tons.

The rapid pace of exports is coming after the 2011/12 Brazilian soybean production was severely curtailed by a crippling drought earlier in the growing season. End users have been scrambling to secure needed supplies before Brazil runs out of soybeans driving prices even higher.

From January through May, Brazil has exported 18.5 million tons of soybeans compared to the 13.5 million tons exported during the same period in 2011. The total value of the soybean complex exports (grain, meal, and oil) through May totaled US$ 3.84 billion, whereas at the end of May 2011, it totaled US$ 2.55 billion. More than half of Brazil soybean exports are destined for China.

Available soybean supplies in Brazil for the remainder of 2012 are expected to be very tight until the new crop becomes available in January of 2013. Processors and exporters are expected to reduce their activities as soon as July or August allowing for additional exports from the U.S.