AGRICULTURAL COMMODITES IN BRAZIL (pandemic 2020)

The pandemic that took thousands of lives away brings with it a lot of pain, social and economic impacts, but also many opportunities, mainly for the export of agricultural commodities.

We know that it is horrible to take a positive look at something so tragic, but the truth is that some countries ended up benefiting during the pandemic, and this is the case in Brazil.

The rapid recovery of the economy in several Asian countries, especially China, prevented the new coronavirus pandemic from causing a shock in Brazilian exports, said Brazilian Economy Minister Paulo Guedes. According to him, the Asian “appetite” made up for the drop in sales to the United States, Europe and Argentina.

BRAZILIAN COMMERCIAL BALANCE

From January to June, Brazil sold US $ 102.43 billion abroad, 6.4% less than in the same period in 2019. According to the most updated figures from the Ministry of Economy, released on Monday, exports total US $ 125.74 billion up to the first week of August, down 6.2% from the same period last year by the daily average criterion.

The trade balance – difference between exports and imports – registered a surplus of US $ 32.08 billion until the first week of August. The result is 16.3% higher than that registered in the same period last year, when the positive balance was US $ 27.59 billion.

The growing balances in the trade balance registered in the last few months are occurring because, with the high dollar and the economic crisis, imports are falling more than exports. Until the first week of August, purchases from abroad totaled US $ 93.66 billion, with a decrease of 11.5% in relation to the same period of 2019 also by the criterion of the daily average.

AGRICULTURAL COMMODITIES – BRAZIL RETURNS TO BE THE LARGEST SUGAR SUPPLIER TO CHINA

With the reduction of the safeguard from 85% to 50%, China is once again the main destination for Brazilian sugar.

Data from Unica show that, until the safeguard began, China was the largest market for Brazilian sugar, with exports exceeding 2.5 million tons per year.

External sugar sales rose from US $ 526 million in July 2019 to US $ 964 million in July 2020. An increase of 83.4% in the period under review. The 92.3% increase in the quantity exported, which reached 3.5 million tons in July 2020, contributing to the increase in exports.

Exports of soybeans reached 10.4 million tons in July this year and generated US $ 3.61 billion in revenues for Brazil. China was the main importer of Brazilian soybeans, registering acquisitions of 7.9 million tons or 75.8% of the amount exported by the grain.

External sugar sales rose from US $ 526 million in July 2019 to US $ 964 million in July 2020. An increase of 83.4% in the period under review. The 92.3% increase in the quantity exported, which reached 3.5 million tons in July 2020, contributing to the increase in exports.

Other factors contributed to the success of Brazilian exports.

The drought that reduced sugar production in Thailand. India that faced problems with sugar shipments due to pandemic control measures.

Anyway, Brazil is not in a much worse situation due to the great success in agonegócios, once again agricultural commodities save the country.

Sources:
Diário do Comércio – https://diariodocomercio.com.br/coronavirus/sem-salvaguarda-pais-pode-exportar-mais-a-china/
Agenda Brasil – https://agenciabrasil.ebc.com.br/economia/noticia/2020-07/queda-das-importacoes-faz-balanca-comercial-bater-recorde-em-junho

We recommend that law also:
IMPORTATION OF BRAZILIAN SUGAR – important information
Guide for Importing Sugar in Container
3 Types of Sugar Import Scams
Procedures and terms for purchasing sugar in Brazil

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