Brazilian Soybean Oil: FOB Paranagua for August Loading at $1,006/MT
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Brazil’s Soybean crushing is estimated to reach a record high of 53.5 million mt in 2023 from the previous month’s estimate of 53.2 million mt, driven by greater demand for Soybean Oil and meal, according to the latest release (July 20) from the Brazilian Association of Vegetable Oil Industries (Abiove).
In the 2022 campaign, raw Soybean crushing stood at 50.932 million mt. Projections for exports of Soybean Oil and meal derivatives in 2023 also increased from June’s estimates. Brazil’s Soybean meal sales were pegged at 22 million mt, up from 21.9 million mt in June estimates. This was up 8.05% yearly from 20.36 million mt in 2022. Latest estimates for Brazil’s Soybean Oil sales stood at 2.4 million mt, up from 0.1 million mt in the June forecast.
The country’s Soybean production and exports were also projected to hit a new record high in the 2023 campaign. Soybean production in the current harvest was estimated to reach 156.5 million mt, an increase of 500,000 mt compared with last month’s projections.
“The international market will continue to increase the demand for products from the Brazilian soy complex this year,” Abiove said. “The export of Soybeans in grain grows from 97 million mt measured in the previous projection to 97.5 million mt in the current balance sheet.”
The supply projections for Brazil’s Soybean derivatives also showed a slight increase. Meal production was estimated at 41 million mt, up 300,000 mt from the previous evaluation. Soybean Oil production was estimated at 10.8 million mt, a 100,000 mt increase from June’s projections.
Brazil is traditionally the world’s largest producer and exporter of Soybean. With surging demand from China and supply constraints from drought-hit Argentina, Brazil is expected to be the leading supplier and exporter of raw beans and meal derivatives in marketing year 2023.
Platts assessed Brazilian Soybean Oil FOB Paranagua for August loading at $1,006.19/mt July 20, $24.03/mt higher on the day, S&P Global Commodity Insights data showed, while Brazilian Soybean meal FOB Paranagua for September loading was assessed at $485.67/mt July 20, $4.08/mt lower on the day.
In 2022/23, Soybean Oil production in Brazil was expected to reach nearly 10 million metric tons, an increase of around two percent compared to the previous year. This would also be the highest figure reported in the indicated period. Soybean Oil accounted for just over 72 percent of Brazil’s raw materials used for biodiesel production in 2021.
Soybean Oil Trade in Brazil
According to AgFlow data, Brazil exported 0.2 million tons of Soybean Oil to China in Jan – July 2023, followed by India (80,000 tons). Total imports hit 0.3 million tons in Jan – July 2023. Brazil ships from the port of Sao Francisco Do Sul mostly.
In 2021, Brazil exported Soybean Oil worth $2.06 billion, making it the world’s 2nd largest exporter of Soybean Oil. In the same year, Soybean Oil was Brazil’s 23rd most exported product. The leading destination of Soybean Oil exports from Brazil is India ($776 million), China ($473 million), Bangladesh ($202 million), Venezuela ($189 million), and Iran ($95.8 million). The fastest-growing export markets for Soybean Oil in Brazil between 2020 and 2021 were India ($528 million), China ($340 million), and Venezuela ($95.9 million).
In 2021, Brazil imported Soybean Oil worth $72.9 million, becoming the world’s 36th largest importer of Soybean Oil. In the same year, Soybean Oil was Brazil’s 352nd most imported product. Brazil imports Soybean Oil primarily from: Argentina ($43.4 million), Paraguay ($26.6 million), Bolivia ($1.84 million), Uruguay ($558k), and Germany ($303k).
Other sources: OEC WORLD
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