Brazil's soybean exports in the first three weeks of December totaled 2.5 million mt, up 23% month on month, according to data the Brazilian foreign trade department released.
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Sign Up Brazil, the world's largest soy supplier, exported 4 million mt of soy in December 2018.
Daily soy exports have averaged 166,800 mt so far this month, against 203,500 mt in December 2018, the data, released Monday, showed.
The year-on-year decline in daily soy exports could be down to China -- the world's largest bean importer -- taking more US-origin soybeans, sources said, as trade talks between the two countries continued, until the phase 1 trade deal was agreed last week.
A partial trade agreement between the US and China may not bode well for the Brazilian soybean farmers, who export nearly 75% of their produce to China.
National agricultural agency Companhia Nacional de Abastecimento forecasts big challenges for Brazilian soybean exports as the US-China trade relations improve.
Conab estimates full-year 2020 soybean exports at 72 million mt, up 3% year on year, while the ending stocks are forecast down 39% year on year to 2.18 million mt in the same period, assuming that China continues to buy more than 75% of its soybeans from the Brazilians.
But, according to the market sources, Brazil's total soy exports in 2020 could be revised lower because of China's commitment to buy more US-origin beans to underline the phase 1 trade deal pre-condition set by the administration of US President Donald Trump.
China, however, has offered no details on its purchase commitments.
SOYBEAN MEAL EXPORTS
Brazil exported 1.16 million mt of soybean meal in the first three weeks of December, up 119% month on month, the report said. The country shipped 1.5 million mt of soy meal in December 2018, it added.
Brazil's primary soybean meal purchaser, the EU, has imported 9.32 million mt of soybean meal so far in the current marketing year that started July 1, up 15% year on year, the European Commission said Monday, with 46% of the shipment coming from the South American nation.
As global demand for meat products is on the rise, primarily fueled by China -- which has been hit by an outbreak of African swine fever since 2018 -- the trend of rising soybean meal imports was set to continue in the EU, sources said.
Soybean meal is used primarily as an animal feed.
The outbreak of African swine fever in China -- the world's largest pork consumer and importer -- has led to the culling of millions of pigs in the country. China has started to import pork from various countries, including EU nations, because of the domestic shortage.
