Brazil's exports of soybeans, soybean meal and corn in August 2016 are likely to be roughly halved from a year earlier, based on lines at ports, as traders focus on selling corn at home and Brazilian soybeans lose competitiveness on the international market.
Brazilian ports exported an estimated 4.87 million tons of soybeans, soybean meal and corn in August, down from 9.37 million tons a year earlier, according to the Williams Shipping Agency.
At this time of year, corn export usually takes the leading position, while soybean export is basically completed. But the instability of rainfall in the central and western regions has led to a sharp reduction in second-season corn production, restricting export potential.
The dollar has fallen about 20 percent against the real since the start of 2016, and the CBOT September corn contract has fallen about 25 percent since mid-June, making Brazil exports 2016
on corn be less attractive.
Brazil's soybean exports may also have fallen about 47% in August from a year earlier, according to shipping data. Brazil produced and exported record amounts of soybeans last year. International soya bean prices are already under significant downward pressure as a bumper us crop looms. A manager of an international trading company says some trading companies have reduced their export programs. Farmers are reluctant to sell soybeans at current prices.
Brazilian soya bean exports hit record highs in March, April and may, easing pressure on shipments at ports later in the year. Drought conditions also led to lower soybean yields than had been expected, although the losses were smaller than for corn. But most of all, the dollar's weakness against the real makes Brazilian soybeans uncompetitive on international markets.