by PressBrazil’s soybean exports will reach record highs in 2023
Safras&Mercado: Brazil’s soybean exports to grow significantly
Analysts at Safras & Mercado have conducted a new study of the agricultural market and made their forecast for next year. According to the report, soybean exports from Brazil in 2023 will be 91.5 million tons, 19% more than expected for the current year. The oilseed is expected to sell 77.2 million tons in 2022.
The forecast for Brazil is an all-time record for exports from the country. The expansion of soybean production contributes to the increase in shipments. In this way farmers want to compensate for the reduction of crop sales by traders from the U.S. Stimulating the increase in supply is demand, which regularly rises. Brazil’s soybean output is expected to exceed 154 million tons over the year, an increase of 18% over previous levels.
At the same time, imports of oilseeds should decrease for the year by 86%, to about 100 thousand tons.
In addition, experts predict that in 2023 the volume of processing will be about 50 million tons, for 2022 they expect a little less than 48 million tons. Production of soybean meal will be at the level of 38 million tons, its export will be almost 19 million tons — 3% more than this year. Domestic consumption will increase by 5% to 19 million tons.
Soybean oil production will reach about 10 million tons, while export supplies will decrease by 10%, to almost 2 million tons. Domestic consumption of the product will be more than 8 million tons, an increase of about 3%.
Global demand for soybeans comes from biodiesel producers. The climate strategy is to reduce carbon emissions, and increasing this type of fuel is one of the options for achieving these goals.
According to Safras&Mercado analysts, in 2023 the use of biodiesel in Brazil will increase by 10% from current levels to 4.5 million tons.
As for the current situation in the soybean market, oilseed quotations increased after lower production forecasts for the United States. Experts note the reduction of the crop of local farmers and their quality deterioration. The reason is the drop in temperature and heavy rainfall. In this case, the production in Brazil will exceed the expected level, which is promoted by the expansion of cultivated areas.
Futures on the Chicago exchange fell by 168% to 526 dollars per ton. During the week the growth of the crop price amounted to almost 3%. At the same time, the price of soybean oil fell by 1.3% to 1470 dollars per ton.