A rise in Brazil's agricultural exports could lead to renewed congestion at its ports
The climb in Brazil's agricultural exports could lead to a repeat of last year's Panamax bulk carrier congestion at its ports.
Brazil exported 17.8 million tonnes of soybeans, corn and sugar in July, its strongest month on record, according to customs data.
Similarly, in 2023, a surge in Brazilian corn exports starting in August, combined with strong soybean and sugar exports, led to unprecedented congestion at Brazil's grain terminals.
Congestion last year was exacerbated by low water levels in Amazon tributaries, which increased pressure on southern ports while also highlighting inefficiencies in port and inland logistics. The main pressure this year has come from soybean exports.
In its latest outlook for the 2023/2024 marketing year, the USDA raised its export estimate for Brazilian soybeans by 2 million tons to 105 million tons. If this is achieved, it means that 15 million tonnes of soyabeans will need to be exported in the next two months, which would be a 25 per cent increase on the 12 million tonnes exported in the same period last year.
According to Clarksons, Brazil's seaborne soybean exports in 2023 are just over 101 million tonnes. Production is expected to be 105 million tons in 2024 and 107 million tons next year.
Meanwhile, Brazilian corn exports are off to a slower start than last year, totaling 3.7 million tons in July, down 17 percent from a year earlier, according to Wilson Sons. Overall, Brazilian maize exports are expected to decline in the 2023/2024 harvest year due to lower annual production and increased domestic consumption in Brazil, especially for biofuel production, which will reduce pressure on Brazilian port terminals.
Brazil exported 17.8 million tonnes of soybeans, corn and sugar in July, its strongest month on record, according to customs data.
Similarly, in 2023, a surge in Brazilian corn exports starting in August, combined with strong soybean and sugar exports, led to unprecedented congestion at Brazil's grain terminals.
Congestion last year was exacerbated by low water levels in Amazon tributaries, which increased pressure on southern ports while also highlighting inefficiencies in port and inland logistics. The main pressure this year has come from soybean exports.
In its latest outlook for the 2023/2024 marketing year, the USDA raised its export estimate for Brazilian soybeans by 2 million tons to 105 million tons. If this is achieved, it means that 15 million tonnes of soyabeans will need to be exported in the next two months, which would be a 25 per cent increase on the 12 million tonnes exported in the same period last year.
According to Clarksons, Brazil's seaborne soybean exports in 2023 are just over 101 million tonnes. Production is expected to be 105 million tons in 2024 and 107 million tons next year.
Meanwhile, Brazilian corn exports are off to a slower start than last year, totaling 3.7 million tons in July, down 17 percent from a year earlier, according to Wilson Sons. Overall, Brazilian maize exports are expected to decline in the 2023/2024 harvest year due to lower annual production and increased domestic consumption in Brazil, especially for biofuel production, which will reduce pressure on Brazilian port terminals.
