iGrain India - Brazil is expected to experience record levels of soybean and maize production in the 2024-25 season, with soybean production estimated to reach 1700 lakh tonnes and maize production to an all-time high of 1250 lakh tonnes. These bumper crops will lead to a significant increase in the exportable stock of these products, boosting Brazil's exports in 2025.
Key export estimates include:
- 10.50 lakh tonnes of soybean
- 420 lakh tonnes of maize
- 350 lakh tonnes of sugar
- 230 lakh tonnes of soymeal
However, several challenges are anticipated. The sharp rise in production could overwhelm Brazil’s port infrastructure. Ports like Paranagua may face congestion, as space limitations and a lack of cargo ships could cause delays in shipments. Additionally, Brazil exports many other agricultural products, such as sugar, which could exacerbate these issues.
Another concern is the late sowing of soybeans, which means harvesting will begin in February rather than January. Weather disruptions, such as rain, could further delay harvesting. This, in turn, could create a transportation bottleneck, as freight demand will increase, pushing up truck fares. For instance, truck freight from Sorriso in Mato Grosso to Paranagua port was 473 reais per tonne in July 2024 and 386 reais per tonne in December. However, this rate is expected to rise further starting in February, as the influx of soybean consignments begins.