Soybean production in South America would increase by 11-16% in the 2018/2019 – Pedro Dejneka


Soybean production in South America would increase by 11-16% in the 2018/2019 season, said Pedro Dejneka, a partner of the Brazilian company MD Commodities, at the XV Anniversary International Conference “Black Sea Grain: Moving Up the Value Chain”  – premiere event of the Black Sea region, recognized by global leaders of grain & oilseeds. Mr Dejneka estimated that soybean crop would reach 200 MMT in the region.

Brazil is currently the main producer of soybeans in South America – in recent years the country produced around 110 MMT of soy per year. And the country exports a large share of its harvest. Brazil is currently the largest exporter of soybeans in the world. What is more, the export share in the overall soybean's balance of the country has been increasing year on year. When in the 2014/2015 season, nearly 52% of all produced soybean were supplied to foreign markets, then in 2016/2017 MY, the share grew to 59%. MD Commodities estimates that in the current season around 61% of Brazilian soybeans will be exported – nearly 68.5 MMT. In the first months of 2018, the country has already shipped abroad more than over the same time last year. For example, in March, soybean exports reached 10.75 MMT against 9.5 MMT a year before.

Corn exports from Brazil is also growing. In particular, during the first three months of this year, the exports were more than twice as high as over the same period in 2017. Last year the country shipped abroad more than 30 MMT of corn. The final result of 2018 will be clear in December – as the largest shipments of corn are expected in the second half of the year, when the second-crop corn enters the market.

Mr. Dejneka also mentioned that Brazil was solving the logistical problems in the sector of agricultural products export. In particular, by means of exporting goods from the ports of the so-called "Northern Arch”. The fact is that the cost of shipping Brazilian agricultural goods to the ports of the "Northern Arch" is much lower than to the southern ports of the eastern coast of the country. For instance, the cost of transporting one tonne of cargo from the center of Mato Grosso to the northern port of Itaqui is $40, while to the southern port of Santos - $88. Moreover, the delivery of cargos by sea to Europe and China is 5-7 days faster from the ports of the “Northern Arch” than delivery from the southern ports, explains Pedro Dejneka.

As a result, over the past six years, soybean exports from the six ports of “Northern Arch” have grown by 334% - from 4 MMT in 2011 to 19 MMT in 2017. Meanwhile, the other major state ports have increased soybean shipments by only 71% (from 29 to 49 MMT). And corn shipments from the ports of "Northern Arch" have grown even more - by more than 14 times over the last six years.

XV Anniversary International Conference “Black Sea Grain: Moving Up the Value Chain”  took place on April 18-19, 2018 in InterContinental hotel, Kiev, Ukraine. Organizer – consulting agency UkrAgroConsult, General Sponsor – ACTAVA TRADING, Exclusive Financial Sponsor – Credit Agricole Bank, Exclusive Exchange Sponsor – CME Group, Official Sponsor – Sierentz Global Merchants. Sponsors -  Filhet-Allard Maritime, INTL FCStone, Intertek, Taban Grain, Tradomatic, Rietumu Bank. Supported by GAFTA and Ukrainian Grain Association.

The conference was attended by 700 delegates from 400+ companies and 50 countries. Participants are represented by international producers and crushers of grains and oilseeds, agri holdings, traders, banks and investment funds, shipping, brokerage, insurance, surveying, law and consulting companies etc.




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