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Brazilian Soy Exports Should Grow 6.3 Per Cent
06.08.2010 11:41 "Agro Perspectiva" (Kyiv) —
The supply to the Chinese market should be the main reason for expansion of Brazilian soy exports from February 2010 to January 2011.
The Brazilian Association of Vegetable Oil Industries (Abiove) has expanded the estimated sale of soy grain for the period to 29.8 million tonnes, growth of 6.3 per cent. In the twelve previous months, they totalled 28.04 million tonnes. The elevation of estimates has taken place for the second time in one month. Before they were expected to reach 29.5 million tonnes.
«The Chinese market is still buying. Demand should be two million tonnes greater, as against 2009,» said the Abiove economist, Daniel Amaral. From February this year to January next year, China should import 50 million tonnes, against 48 million purchased in the previous twelve months. «And Brazil should be one of the main suppliers,» said Mr Amaral. According to the economist, the demand of the Arab market is also growing, but the purchases are mainly soy oil and chaff.
One of the reasons for the growth of exports and for greater sales to China is the greater soy production capacity of Brazil, when compared to other producers. The country should harvest 68.4 million tonnes of soy this crop, according to the Abiove, whereas the previous crop resulted in 57.3 million tonnes. The United States, for example, due to competition between soy and maize, should boost its production by less. The growth should be from 90 million tonnes to 91 million tonnes, recalled Mr Amaral.
China is the greatest soy importer in the world. Chinese purchases represented two thirds of global imports of the commodity and also grew, recalled Mr Amaral, due to the policy for fiscal incentives for the local production of soy. With the greater income and expansion of the Chinese population, there is need for more soy for production of chaff, which is eaten by chickens and pigs. A way to boost production is by feeding these animals protein, he explained, recalling that soy has much protein.
Abiove has also expanded soy chaff export forecasts, to 13.6 million tonnes, against a previous estimate of 13.2 million tonnes. This volume of sales should take place between February 2010 and January 2011. In the twelve previous months, they were 12.038 million tonnes, according to the Abiove. Sales of soy oil should remain at 1.5 million tonnes in the period, as against 1.45 million tonnes in the previous year. The current estimate for soy chaff was adjusted by 1.5 million tonnes.
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