Soy exports in February totaled 5.12 million tonnes, slightly below that registered in the same month last year (5.27 million), but representing the highest volume shipped since July 2019 (7.4 million), according to with data released by the government on Monday (2). Accelerated sales in February were recorded amid the harvest of a Brazilian harvest estimated at a record 123.25 million tonnes and after relatively weak exports in January, 1.5 million tonnes, when the harvested volume of the new season is still it was low. The delay in harvesting the current season, after a later planting, ended up transferring many shipments previously scheduled for January, which helped boost exports last month, noted analyst Andrea Cordeiro. “Many purchases were already scheduled for January, but with the delay in the harvest they were pushed into February … Even at a slower pace compared to February 2019, lineups showed an increase in ships offshore,” said Andrea. Since the beginning of February, the schedule of ships in the ports pointed to an intense activity. Rains, however, limited movement. “The flow of shipments was not only greater due to the delay (in the harvest) and not due to cancellations of purchases made, as it got to air in the wings”, she added. The analyst also pointed out that, if the market anticipated the scenario of deceleration in soybean shipments to China based only on the conclusion of the Phase 1 trade agreement between Chinese and Americans, at the beginning of the year, this was not confirmed in practice. “Business between countries really stagnated and a lot due to the lunar holiday (in China) combined with the coronavirus, but this was a widespread trend, and not just for agribusiness and Brazil,” explained Andrea, pointing out February shipments are for businesses made previously. She anticipates that in March Brazil’s exports are expected to remain firm, while Brazil demonstrates competitiveness amid a large harvest and a strong dollar. “It is worth noting that this delay also pushes a part of the planned commitments from February to the month of March, and that will be the reason for seeing in March a greater growth in the lineups … and, if weather conditions allow, a flow number of shipments at Brazilian ports. ” Last month’s shipments were strong despite February 2020 having 18 working days, compared to 20 last year and 22 in January.
Source: Portos e Navios / G1