Heated foreign demand and rising dollar boost starch exports of Brazil

Published 2021년 11월 11일

Tridge summary

Despite slow internal negotiations, Brazil has seen a boost in cassava derivative exports, particularly cassava starch, reaching a record 4.3 thousand tons in October. This increase is due to strong external demand and a high dollar, with the total export volume for the first ten months of 2021 being 107% higher than the same period in 2020. The average export price for Brazilian starch has also decreased, making it more competitive in global markets. Additionally, exports of modified starches have grown by 92% compared to the same period in 2020. However, the long-term sustainability of this growth relies on the continuity of external demand, especially from Thailand, which is the main global producer and exporter of cassava starch.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

While internal negotiations involving cassava derivatives (flour, starch and modified starches) are slow, exports of some of these products have been showing excellent performance this year. In the Brazilian market, low liquidity may be linked to declines in retail sales and industrial production. According to calculations by CEPEA (Center for Advanced Studies in Applied Economics), Esalq/USP, in October, the apparent consumption of cassava starch fell 57% compared to the previous month, and in the accumulated result for the year, 2.2%. On the external front, shipments of cassava starch and starches have been driven by strong external demand and the high dollar. Furthermore, Brazil has been one of the few countries with a surplus for exports. Data released by the Secretariat of Foreign Trade (Secex) and compiled by CEPEA show that, in October, Brazil exported 4.3 thousand tons of starch, a record, considering the historical series of Secex (started in 1989), being expressive 72.3% ...

Source: Abam