BRASÍLIA: Brazil does not appear to have over-shipped its soybeans to the extent that it did for corn this season, and there is evidence that the country’s yearly soybean export target may need to be reduced. A potential tightening in global soybean supply has caused concern in agriculture markets lately. The ongoing wrapup of South America’s 2015-16 soybean season will set the tone for the new marketing year with particular focus on Brazil, the world’s leading soybean supplier.
Brazil’s June soybean shipments fell sharply from both the previous month and previous year by at least 20 percent. Both the recent decline in exports and current port lineup data for July suggest that the country may not experience a sudden domestic soybean shortage similar to the one that surfaced earlier this year for corn.
This should come as a relief to domestic consumers, but the Brazilian government is not taking chances. Late last month, the agriculture minister announced that bean import limits from China and Mexico would be lifted to curb this year’s production shortage. But just because Brazil may be left with a few more soybeans sitting around than it had expected, it does not necessarily mean that the world will too.
