Despite breaking export level records in 2013, Brazilian beef exports are expected to continue to increase through 2014 according to Rabobank’s Brazil Agribusiness Outlook 2014 report. Brazil’s beef sector is set to profit from a combination of reduced supplies from major global beef suppliers such as the U.S. and Australia, high demand from Asia, greater market access to countries such as Thailand, Myanmar, and Cambodia, and the probability of a weakening exchange rate over the course of the year. Brazil is also in negotiations to gain greater market access to the U.S., China, and Saudi Arabia. In other sectors, only 30% of Brazil’s soybean crop is expected to see a 15% decline in yield due to drought and good yields on the remainder of the crop are expected to offset tighter margins. In 2014 the area planted in soybeans increased by 7% or 2 million hectares and could continue to increase after another positive year. Brazil’s corn output is forecast to fall 11% to 72 million tons as global supply exceeds demand. The expected weakening exchange rate could help farmers combat declining prices. Ethanol prices are expected to exceed prices in 2013 after the country increased gas prices by 4% in late 2013 and the country experiences increased demand. Brazilian poultry is expected to have a good year as grain price continue to be low and markets for competing animal proteins are tight. However, global poultry trade is only expected to grow by 1% – 2%.
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