Brazil's April soybean exports fall 28% on year on slump in output

Brazilian soybean exports in April slipped 28% on the year, according to the country's foreign trade department Secex.

The country shipped 11.6 million mt of the oilseed in April, while in the same period last year, the country had exported 16.1 million mt, the Secex report released May 5 showed.

According to commodities analysts, Brazil's April soy shipment drop can be explained by the massive cut in the output forecast for the 2021-22 marketing year. Additional factors were higher domestic crush demand and sluggish China demand for the oilseed, analysts said.

Brazil's national agricultural supply company Conab defines the Brazilian soybean marketing year 2021-22 as January-December 2022.

Production slump pressures exports

Brazilian soybean production could fall to as low as 122 million mt, which seems a long way away from early season estimates of as high as 150 million mt, analysts said.

Conab has forecast the 2021-22 crop at 122.7 million mt, down from early season estimates of 145 million mt.

As a result, Brazil's exports in MY 2021-22 are expected at 77 million mt, compared with 86 million mt a year ago.

Crush versus exports

Conab sees a huge upsurge in demand for domestic crush amid rising soybean oil prices, which is also pressuring export volumes.

The total crush for MY 2021-22 was forecast at 46.5 million mt, up 3.5 million mt on previous estimates, Conab said in its monthly report in April.

Brazil is the world's leading producer and exporter of soybeans, accounting for more than one-third of the world's soybean production and half of global exports.