Brazil Ship Backlog Expands On Record Soybean Production

Brazil Ship Backlog Expands On Record Soybean Production

 

According to shipping agency Unimar Agenciamentos Maritimas Ltda., as many as 126 ships were scheduled to load 6.2 million metric tons of soybeans and corn as of January 29th compared to 72 ships loading 2.8 million metric tons a year ago, and 47 vessels with 1.5 million metric tons in 2011.  The wait for ships at port is reaching 35 days and could affect the soybean price outlook according to Macquarie Group Ltd.  Brazil’s corn season began September 1st and the country may produce 71 million tons in 2012-13 – the second highest yield on record while the soybean output of 82.5 million tons will be a record crop. February through August is Brazil’s main soybean export window.  This year’s exports may reach between 33 million and 35 million tons compared to 29 million tons in the same period a year earlier, and about 25 million tons in the previous three seasons.  The backlog of vessels is a concern for sugar traders as well as some terminals used to load sugar switch to grains and oilseeds this time of year.  This backlog highlights the infrastructure challenges that Brazil’s agriculture sector is increasingly facing as its agricultural production and exports expand.

 

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