By Alastair Stewart
DTN South America Correspondent
SAO PAULO, Brazil (DTN) -- Brazil saw soybean exports slide in August, reflecting less fervent demand as China waits for the bumper U.S. crop.
The world's No. 2 producer has been registering record shipments since the season started in February. But last month shipments subsided to 4.12 million metric tons, down from 5.4 mmt in the same month of 2013.
Buyers remained interested in buying Brazilian soybeans in August, which was reflected in an 80-cent jump in the premium for September delivery during the month to $2.60 per bushel over Chicago at Paranagua Friday. This premium offset a good part of the recent decline in futures prices but didn't offer enough to convince Brazilian farmers to sell large volumes of stocks, especially with the Brazilian real strengthening.
In Sorriso, Mato Grosso, soybeans were quoted at R$55.00 per 60 kilogram bag Monday, only marginally down from R$55.50 one month before.
Meanwhile, buyers weren't willing to go higher with international stocks replenished and the U.S. crop due from next month.
Still, Brazil remains on course to export a record 45 mmt in 2014, up from 42.8 mmt last year. So far in 2014, Brazil has shipped 42.0 mmt of beans, up from 37.2 mmt last year.
Meanwhile, corn exports surged in August as the second crop started arriving at port.
Shipments totaled 2.5 mmt last month, up from 592,000 metric tons in July but lower than the 3.1 mmt shipped in the same month last year.
With a massive U.S. crop on the way, Brazilian corn exports are expected to fall to the 19 mmt to 20 mmt region in 2014 from 26.2 mmt last year.
That is a bit of an issue as a bumper second crop means Brazilian farmers have a lot of corn to sell.
Poor prices meant many thought second-crop output would slump this year. But a big jump in area in Goias, Mato Grosso do Sul and Sao Paulo offset a decline in the main-producing states ofParana and Mato Grosso, while -- after a difficult start -- the crop enjoyed excellent weather conditions and is delivering higher-than-expected yields. So with the harvest drawing to a close, production will likely end up on a par with last year's record crop of 45 mmt.
As a result, total Brazilian production in 2013-14 will reach 77.2 mmt, only 5 mmt lower, than the year before, according to Safras e Mercado, a local grains consultancy.
Alastair Stewart can be reached at email@example.com
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