Brazil, the top most producer, and exporter of Soybean was anticipated to import the same in the year 2021.
Reportedly, the country has suspended import duties on soy, corn, soybean meal & oil until the end of this year according to the agricultural ministry.
The measures were taken to curb the global price rise on the commodities that were also causing domestic inflation.
The request for exemption was made by The Brazilian Association of Animal Protein.
Last year as well same measures were announced by the ministry with the expectation to stabilize the 2020/2021 grain harvest and balance the supply-demand equilibrium.
This year the inflated international prices due to strong demand & continuous devaluation of Real against the US Dollar are putting more pressure on the domestic prices in the country.
Being one of the largest exporters Brazil’s inventory of the crop might typically exhausted due to the heavy demands from countries like China. However, The March soybean imports in China from Brazil remain low due to the rain damage followed by which China turning to the USA more this year.
Nevertheless, Brazilian farmers were expected to harvest 130 million tons of Soybean crop this year. The estimate that eventually might be lowered due to the rains.
As far as the outlook of Corn is concerned the country may expand its acreage by around 1 million hectares this year.
Although USDA has lowered its production estimates in 2020-2021 to 105 million tons the production this year might reach 108.2 Million tons due to the area increase which is an increment of 5.5% from the previous season.