World Grain - April 2013 - 14

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Brazilian port bottleneck much worse than normal

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KANSAS CITY, MISSOURI, U.S. — The current 60-plus day backlog of soybeans at ports in Brazil is about twice as severe as usual
and reﬂects the record-large soybean crop being readied for export
in South America, said Paul Meyers, vice-president of commodity
analysis, Foresight Commodity Services.
“Thirty days is not unusual,” Meyers said, “but the record soybean
crop has meant much longer delays.”
In its latest World Agricultural Supply and Demand Estimates, the
U.S. Department of Agriculture (USDA) projected 2012-13 Brazilian soybean production at 83.5 million tonnes, up 26% from 2011-12.
Meyers said Brazil has projects under way to improve the infrastructure of its ports and roads because the “Brazilian government
knows the importance of timely exports,” especially as Brazil plans
to increase its production of soybeans, corn and sugar primarily for
export in the next 5 to 10 years.
Argentina also is exporting agricultural commodities at an everfaster pace but any shipping delays have been mostly the result of
labor unrest.
“Argentina hasn’t had problems with loading, but it has had some
issues with strikes in recent years,” Meyers said.
The port delays in Brazil are having some impact on the usual scenario where U.S. exports of soybeans slow markedly from the end of
March, when the South American harvest is well under way, to October and then revert to the U.S. after the U.S. fall harvest. The Brazilian soybean harvest was estimated to be more than 75% completed.
Meyers said stocks of U.S. soybeans are low and the market would
obtain a more precise view of supplies of both soybeans and corn
from the USDA’s Grain Stocks report on March 28.
U.S. agricultural commodities have experienced no delays in shipments at U.S. ports, in part because exports of U.S. corn are down about
55% from last year, even though soybean shipments were up about 21%
for the marketing year as of March 21, according to USDA data.

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14

BRUSSELS, BELGIUM — The XXVI FEFAC Congress, planned
June 5-8 in Krakow, Poland, will focus on “Staying Proﬁtable in
Volatile Times.”
Keynote speakers from the European Commission, including Deputy Director General Jerzy Bogdan Plewa, the Polish Ministry of Agriculture, global ﬁnancial institutions, market and food chain partners
and academia will present their views on how to maintain a vibrant
livestock economy in a volatile market and political environment.
They will discuss with the Congress audience how the industry can meet both European and global consumer demand while
ensuring the economic viability of livestock producers and value
chain partners.
FEFAC’s Congress will provide a unique opportunity to take stock
of the key measures that could help improve competitiveness of the
E.U. livestock sector, including new initiatives for innovation and
sustainable development in livestock agriculture, organizers said.
FEFAC President Patrick Vanden Avenne said that “the only certainty we have today is that volatility is here to stay — our industry needs to support and encourage swift policy and market actions
to develop the new ﬁnancial risk management tools that allow our
sector to stay proﬁtable in the years ahead, reaping the beneﬁt from
growing global consumer demand for products of animal origin.”
More information is available at www.fefaccongress2013.eu.
April 2013 / World Grain / www.World-Grain.com

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World Grain - April 2013

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