The harvests of soy and corn of Brazil could surprise positively, despite initial weather problems in the 2023/24 season. The expectation is for a busy second semester in grain exports, said the president of Cargill in the country, Paulo Sousa, in an interview with Reuters.
On the occasion of the release of the company's results in 2023, the company recorded record profits and investments in Brazil. Sousa assessed that revisions to the Brazilian soybean harvest from now on should be made upwards. This is due to the positive results from later areas, such as Rio Grande do Sul and Matopiba (Maranhão, Tocantins, Piauí and Bahia).
“We do not report harvest numbers. Despite the initial problems in Mato Grosso, the soybean harvest is not as worse as the previous one,” he said.
“So there are other regions that compensate for this drop in Mato Grosso. That’s our vision,” he said.
Brazilian agricultural production in 2023/24: Expectations and record results
Production estimated by Conab for 2023/24 is 146.52 million tons, a drop of 5.2% compared to the previous record.
In Brazil, expectations for second harvest corn are favorable, but below historical levels, representing 75% of the national harvest.
“The off-season is not a record like last year, but it is very good, and there is an expectation of a second half of full logistics, with both soybeans and corn being exported,” said Sousa, avoiding making projections of export volumes.
Last year, Brazil exported more than 100 million tons of soybeans for the first time, while corn exceeded 50 million tons in the year, record levels that helped the results of the Brazilian unit Cargill.
The total volume of products originated, processed and sold by Cargill also grew by 10 million tons from 2022 to 2023, totaling around 51 million tons, mainly with higher volumes of soybeans and corn.
Cargill recorded record net profit of 2.5 billion reais in 2023 in Brazil, an increase of 101% compared to 2022,
“We are very proud to announce Cargill’s record profit in Brazil, marking our 59 years of presence in Brazil.”
Record performance and future projections
The agribusiness giant's results in Brazil in 2023 were driven by large harvests, favorable international prices and a drop in the Argentine harvest.
This brought additional demand to Brazil, causing soybean crushing margins to reach record levels in Brazil, as Sousa said. Additionally, in 2023, Cargill invested R$ 2.6 billion, an increase of 116%, including the purchase of soybean processors and biodiesel units.
The United States-based company completed in December the acquisition of three soybean crushing and biodiesel production plants in Brazil that previously belonged to Granol.
For 2024, Cargill projects lower profits and investments in Brazil, as a combination of factors driving the 2023 numbers will not be present.
The executive did not reveal targets, but said that crush margins will halve in Brazil in 2024 compared to their 2023 highs, with the recovery of Argentina's harvest and lower prices for agricultural commodities.
Source: Roberto Samora | Notícias Agrícolas
