March 20, 2015
Vessel Lineup in Brazil for Soybeans Larger than last Year
Now that more soybeans are flowing to Brazilian ports, the number of vessels arriving to load soybeans is also increasing. In fact, the lineup of vessels scheduled to arrive at Brazilian ports by the end of April is actually larger than last year.
The pace of Brazilian soybean exports started off slow this year due to the delayed start of the Brazilian harvest. The delays were further compounded by the truckers strike at the end of February and early March that halted all truck transport across the country. With both of those events now behind us, there is increased interest in Brazilian soybean exports.
The decline of the Brazilian currency compared to the dollar is also making Brazilian soybeans much more attractive to importers. The currency has devalued 37% over the past twelve months which is making Brazilian soybeans much more competitive on the international market. Importers want to take advantage of the currency situation, therefore they are significantly increasing the number of vessels they are sending to Brazil.
According to reports from Reuters, Williams Meantime indicated that there are currently 141 vessels scheduled to arrive in Brazil by the end of April to load 8.49 million tons of soybeans. Last week the lineup was 123 vessels to load 7.62 million tons. One year ago it was 122 vessels to load 7.28 million tons. As of February 18th, there were 101 vessels waiting to load at Brazilian ports compared to 96 vessels waiting on February 18th of 2014.