Demand for grains in Brazil will remain high this year

Demand for grains in Brazil will remain high this year
Demand for grains in Brazil will remain high this year
Exports of soybeans in the last month recovered somewhat of the rhythm and registered an increase of more than 24% in comparison with March last year. In January this year, grain exports were 96.5% below the volume compared to the same period in 2020. In February, there was also a 40.1% drop in shipments.

Only the month of March stood out with an increase in shipments of 24.3%. Although the record of improvement last month, accumulated in this first quarter, there is a drop of 3.8 percent compared to the same period in 2020.

Regarding corn, the picture is different. Exports increased in January and February with 21% and 141%, respectively, and a decrease in shipments only in March, with 37.7% less compared to the same month last year.

In the first quarter of 2021, the increase in corn shipments is higher with 25.6%, driven by the high volume of corn exported in February.

According to Felipe Serigatti, professor at the São Paulo School of Economics, at the Getúlio Vargas Foundation, part of these exports were already contracted, and in the case of soybeans, the result is positive.

“Although Brazil has not reached the record of 17 million tons of soybeans exported, we are talking about the second largest brand in our history, with the sale of 16, 4 million tons”, he highlights.

Good time for grain exports

In the assessment of Canal Rural commentator Miguel Daoud, the scenario shows that Brazilian demand for grains will remain strong. “Whether internally or externally, the demand for grains from Brazil will continue, it is inevitable. The producer is investing because this is the opportunity he has ”, he says.

Daoud still draws attention to two scenarios, where not all producers were able to take advantage of the situation. “Those who produce on a large scale may be more profitable, while the smaller ones may face more difficulties, due to high costs,” he adds.

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