Cargill expects busy Brazil grain exports in second half of year

Soy output projections may be revised upwards
calendar icon 29 April 2024
clock icon 2 minute read

Brazil's grain exports will pick up in the second half as soy and corn supplies increase despite a drought in the center-west earlier, Reuters reported, citing Cargill's Brazil president Paulo Sousa.

Citing a positive outlook for soy in the Matopiba region and in Rio Grande do Sul, Brazil's southernmost state, Sousa said in an interview that soy output projections may be revised upwards.

"Our view is that the soybean harvest is not that much worse than last year," Sousa said as Cargill released results for its Brazilian operation.

Brazil's soy production in 2023/24 is estimated at 146.52 million metric tons, a decrease of 5.2% compared to the previous cycle's record, according to crop agency Conab. The fall is driven by a drop in production in Mato Grosso, Brazil's top-producing area.

Expectations are also favorable for Brazil's second corn, which accounts for around 75% of the national production and is being grown now.

"The second-corn crop is not going to be a record like last year, but it is looking very good," Sousa said.

Last year, Brazil exported more than 100 million tons of soybeans for the first time, while corn exports exceeded 50 million tons.

Cargill's Brazilian unit said its total volume of products originated, processed and sold in Brazil grew by 10 million tons from 2022 to 2023, totaling around 51 million tons, mainly soybeans and corn.

Sousa declined to predict grain export volumes for 2024.

Cargill recorded record net profit of 2.5 billion real ($488.65 million) in 2023 in Brazil, an increase of 101% compared to 2022.

($1 = 5.1161 reais)

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