South America Calling

Brazil posted a monthly record for soybean exports in May, highlighting strong Chinese demand and the increased efficiency of the ports.

The world's No. 2 soy producer shipped 9.3 million metric tons last month, up from 6.6 mmt in April and smashing the previous monthly record of 8.3 mmt set in April 2014.

Chinese demand for Brazilian beans has been strong for the past few months. This is reflected in strong premiums at Brazilian ports. Soybeans were quoted 56 cents per bushel over Chicago for June delivery in Paranagua Monday compared with a 38-cent discount a year ago. Premiums are being offered despite ample availability. Brazil has just harvested a record crop of 93 mmt to 95 mmt, up around 10% on last year.

Normally, April is the peak month for Brazilian shipments but delays in the harvest and a truckers' strike in February caused exporters to delay cargoes. As such, there was greater-than-normal pressure on infrastructure in May, which ship line-ups indicate will extend into June.

The ports have coped well with the deluge after implementing logistical improvements such as scheduled truck deliveries at Santos this year. Dry weather has also helped.

Brazil will export 48.0 mmt of soybeans in the 2015-16 season, up from 45.7 mmt last year.

(CZ)

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