China accelerates purchases of Brazilian corn; Argentina, soybean – 07/03/2023 – Shuttle

Brazil starts 2023 with two new clients in the commodities area. China, absent from the Brazilian corn market until last year, took second place in the ranking of cereal imports in this first two months.

Argentina, the third largest producer and exporter of soy, was the fourth main market for the Brazilian oilseed in January and February. The Argentines bought 226,000 tonnes in the two-month period, the highest volume for the period since 2016.

With a crop failure due to drought, Argentina had to turn to the foreign market to complement its domestic demand.

The Chinese, increasingly dependent on imported corn in recent years, released the Brazilian cereal for purchases in 2022 so as not to become so dependent on the American product.

China imported 1.1 million tons of this cereal from Brazil between January and February, second only to Japan, which acquired 1.5 million tons, according to data from Secex (Secretary of Foreign Trade).

Brazilian corn exports increased in the first two months of this year, totaling 8.45 million tons. Half of that volume went to the four largest importers, all from Asia.

Wheat exports, although having retreated in the first two months, are still at a very high level for the period under analysis.

Soybeans, leader of the export basket last year, lost space at the beginning of the year. Due to the delay in the harvest, exports from January to February fell to 6 million tons.

China took 68% of national exports this year. In the first two months of last year, foreign sales had reached 8.72 million.

Follow-up by AgRural this Tuesday (7) pointed out that this year’s soy harvest is restricted to 43% of the planted area. Rains in Paraná and Mato Grosso do Sul impede the work of harvesters.

Accelerated Chicken meat exports reached US$ 1.59 billion in the first two months of this year, 24.5% above the value for the same period in 2022. In volume, foreign sales totaled 800 thousand tons, with an increase of 11%.

Accelerated 2 The data are from ABPA (Brazilian Association of Animal Protein), based on Secex. China led imports in the period, with the purchase of 112 thousand tons.

Inflation Food prices in the wholesale market have registered deflation in the last 12 months. From March 2022 to February 2023, agricultural products decreased by 3.74%.

Inflation 2 The data are from FGV’s IGP-DI. Last month, however, after the 0.56% deflation in January, food prices rose again at wholesale, becoming 0.26% more expensive.

Inflation 3 According to the FGV, the biggest highs last month were coffee, eggs and milk. Among the declines were soybeans, beef, beef and potatoes.

Corn The summer crop of people from Paraná had an average yield of 9,564 kg per hectare. With that, the volume produced rises to 3.7 million tons, above the 2.98 million of 2022, according to Deral (Department of Rural Economy).

Soy With an average productivity of 61.6 bags per hectare, production in 2022/23 in Mato Grosso rises to 44.3 million tons. Data from IMEA (Mato-Grossense Institute of Agricultural Economics) indicate growth of 8.4% for this harvest, compared to the previous one.

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