Brazil's Jan soybean exports off to a strong start

Brazilian soybean exports in the first half of January have surged considerably from the same period last year, according to the country's foreign trade department Secex, likely supporting local oilseed prices.

The world's top beans producer and exporter shipped 1.24 million mt of the oilseed through Jan. 16, while in the same period last year the country exported only 17,500 mt, the Secex report said Jan. 17. Exported volumes were 49,498 mt for the full month of January last year, the data showed.

The majority of January soybean shipments were headed to China – the world's largest beans importer.

In addition, the Brazilian soybean harvest has started well ahead of normal schedule, which has supported exported volumes. The harvest in the states of Mato Grosso and Parana began almost three weeks ahead of last year's pace.

According to agricultural consultancy AgRural, the harvest reached 1.2% of the projected area of 40.4 million ha in Brazil through Jan. 13, against 0.4% in the same period last year and the five-year average of 1.1%.

In Mato Grosso, the harvest is concentrated in the west and mid-north, and initial reports suggest strong yields, the consultancy said.

Brazil exported a record 86.1 million mt of soybeans in 2021, with 70% shipments headed to China, Secex said.

According to average estimates, Brazil is expected to export over 90 million mt of beans in 2022. However, drought-led cuts in the output forecast could slow shipments.

AgRural has already sliced its 2021-22 crop year (September-August) output forecast for Brazilian soybeans to 133.4 million mt, down 12 million mt on previous estimates. It is widely expected that more agencies will follow suit and reduce their forecast amid the prolonged drought in the southern parts of Brazil.