Brazil August soybean exports to hit record-high as corn loses out

Improved loading rates and an insatiable international customer have seen Brazil's loading rates for soybeans pick up over the past week, with a total of 2.2 million mt leaving in the week ending August 17, according to customs data released Tuesday.

That's nearly one million mt higher than seen during the same period of 2017.

So far, 4.9 million mt of beans have left Brazil in the first half of August, around 82% of the entire volume seen in August 2017, and full month exports on track to beat expectations of 8 million mt.

An estimated 80% is destined for China, in line with the June and July figures, with the country increasing its Brazilian purchases following an escalating trade war with the US.

Yet, with Brazil’s record bean crop coming to an end, China is set to move back to US production by the end of the year, despite the county having record stocks of close to 10 million mt.

The higher soybean loading rates have come at the expense of corn loadings that slid back by over 10% to a daily average of 88,400 mt.

August exports, normally the second highest of the year, are struggling to speed up with only 1.15 million mt departing during the first half of August, just over 20% of what was exported during August last year.

Low global corn prices, weather, the lingering effect of the trucker strike and a late running harvest have all combined to weigh on corn activity. 

Assuming steady loading rates during the second half of August, the full month's exports are set to hit just 2 million mt, which would be the lowest volume since 2011.

Corn volumes have struggled to get to ports as rains delayed the harvest progression of Brazil’s second, and largest, corn crop.

Up to last Thursday, 83% of the second corn crop was harvested, behind last year’s progress of 89%, Brazil-based consultancy Agrural said.