Brazil has the lowest wheat imports in the first half in 26 years – 7/3/2023 – Vaivém

Brazilian imports of wheat dropped to 2.03 million tons from January to June this year, the lowest volume for the period since 1997, when foreign purchases had been 1.96 million, according to data from Secex (Secretary of Foreign Trade ).

The lower need for imports is because the country has a record harvest, which reached 10.6 million tons last year, and may have another similar one this year, according to data from Conab (National Supply Company).

Rio Grande do Sul and Paraná, national leaders in production, have prospects for good harvests in 2023. Last year, the people of Rio Grande do Sul placed 4.95 million tons of wheat on the market, and the people of Paraná, 3.5 million.

National consumption is 12.4 million tons, and demand will be complemented by imports. In the last two years, however, the country has accelerated exports. In 2022, the total volume for the year reached a record 3.1 million tons. From January to June this year, there were already 2.1 million tons.

The agribusiness trade balance ends the first half of the year at an even greater pace than that of the same period last year, according to data released this Monday (3) by Secex.

Revenues from agriculture rose to US$ 43.1 billion, with an increase of 15% in export volume and 7% in revenues received. In this first half, however, international prices lost steam and fell by 3.4% for the sector’s products.

The trade balance was reinforced, once again, by soybeans, which had the highest export volume in history for the first half of the year. The country placed 62.9 million tons of oilseeds on the foreign market, 19% more than in 2022. Revenues from soybeans total US$ 33.5 billion this year.

Brazilian exports should end the year with figures well above 90 million tons. Brazil harvested a super harvest of 156 million tons, and the United States, the world’s second largest producer and exporter, still has uncertainties regarding the climate and production potential.

Corn exports are also at a good pace and already total 11.7 million tons. Forecasts for the year are for a volume of more than 50 million.

From now on, shipments of soybeans will decrease, and those of corn from the second harvest will increase. The international cereal price scenario, however, is not as favorable as in 2022. June shipments were made with a 17% retraction in ton prices, compared to the same period last year.

As with corn and soybeans, average international meat prices also declined. Brazil managed, however, to maintain the same revenue level as in the first half of last year due to the increase in export volume.

According to still provisional data from Secex, total exports of beef, chicken and pork rose to 4.2 million tons this year, 10% more than in 2022. Revenues, however, remained at US$ 11.3 billion.

The drop in the average price of beef of 18.5% in the international market in the first half caused revenues from poultry meat, whose price remained stable, to once again surpass those of beef. Chicken exports totaled US$ 5.1 billion.

While exports rise, imports of the main inputs retreat. Foreign purchases of fertilizers fell to 7.1 million tons in the first half, well below the 12.8 million tons in the same period last year.

Prices were also more favorable this year than in 2022. As a result, spending on imports of this input fell to US$ 13.6 billion, 30% less than from January to June 2022.

Imports of agrochemicals slowed down, reaching 144 thousand tons in the year, 46% below the volume from January to June 2022. This year, spending on foreign purchases fell to US$ 1.7 billion, 33% less than in the previous year.

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