Chinese soybean processers have been ramping up grain purchases from Brazil, fueled by strong demand from the swine sector. In the first 5 months of 2021, the country imported 38.23 tons, a 12.8% growth compared to last year.
Rains and poor weather delayed harvest and shipments earlier this year, but everything is returning to normal with ships arriving in China and going through the process of customs clearance. The month of June traditionally sees high rates of imports by China because it is the period post-harvest in Brazil, its biggest supplier.
As for meat, cattle and swine were responsible for high demand so far in 2021, while Brazil’s chicken exports decreased in the first half of the year. Bovine meat exports added up to USD $1.5 billion in 2021, over 5% more than the same period in 2020.
The growth for exports continues with potential increased consumption of meat amongst Chinese consumers. Note that China represented more than 50% of all Brazilian meat exports in 2021, according to Reuters.
The Brazilian trade balance registered a surplus of USD $27.12 billion between January and May of this year. In the first five months, USD $108.6 billion was exported, and USD $81.51 billion worth of goods were imported. The main exports are commodities (19%), iron (15%) and crude petroleum oil (10%).
The opinions of the author are not necessarily those of Farm Futures or Farm Progress.