24-03-2021 Dry bulk: Brazil set to reap 133m tonnes of soybeans this season, DNB Markets
According to Global AG Protein, China has accounted for 61% of the global soybean trade during 2019 to 2021, currently boasting 34% of the world’s soybean stocks.
Due to seasonality and harvest dates, Chinese demand is usually supplied by US volumes during October through March and by Brazilian volumes from March through October.
This season, albeit delayed, Brazil is set to reap a soybean harvest of 133m tonnes according to estimates from the US Department of Agriculture – double the volume seen during the mid-2000’s and above 125.6m tonnes in 2019/20 season.
Moreover, the trend is widely expected to continue due the weak Brazilian real and high future prices for US soybeans.
Likely more good news for the mid-size bulker segment which has been riding new highs recently and lifting other dry bulk segments along with it.