The South American country significantly increased its exports of crude oil, cotton and pork in December 2019. China's hunger for raw materials and its shortage of animal protein following the outbreak of African swine fever are the reasons for Brazil's record exports.
In December, Brazil exported 8.72 million tons of crude oil. This was more than twice as much as in December a year ago and was the largest monthly volume ever. In 2019 as a whole, the country exported 64.6 million tonnes of crude oil, 9% more than in 2018. Production from the oil field beneath a huge salt layer in the Atlantic at a depth of more than 2,000 meters is now really picking up speed.
While conventional oil production is stable, the production of so-called "pre-salt" oil is now setting new export records almost every month. One association representative believes that a large proportion of global oil demand will be supplied from Brazil in the future. By the end of this decade, Brazil will be one of the five largest oil-producing nations in the world.
Pork, cotton and corn
Brazilian exports of pork reached 65,900 tons in December and rose by 15% in 2019 as a whole compared to 2018. Exports of beef also benefited from the supply crisis in China. They rose by 12% to 1.52 million tons in 2019.
Brazil's cotton exports also set new records in December and for 2019 as a whole. 278,000 tons of textile fibres left the country in December and 1.55 million tons for the year as a whole. Production has increased in the last two years. While China imposed punitive tariffs on cotton from the USA, Brazil benefited from this.
Brazil's corn exports reached an all-time high of 44.9 million tons in 2019.
Source
HANSA Terminhandel
