Uruguayan exports are closing a year of recovery and growth

Published Nov 10, 2024

Tridge summary

Uruguay's agricultural exports have seen a 10% year-on-year increase in October, reaching US$ 1,076 million, with a 14% rise in the first 10 months of the year to US$ 10,807 million. The growth is primarily driven by soybeans and cellulose, with the new UPM plant contributing to Uruguay's position as a major exporter of Eucalyptus fiber. However, wheat, wool, and leather exports also contribute significantly. Despite a decrease in global prices, cellulose sales to the US have increased, making it the third-largest buyer. Soybean prices have fluctuated due to large harvests in Argentina, Brazil, and the US. Dairy products and rice exports have seen decreases due to reduced sales to Brazil and a smaller harvest, respectively. The start-up of UPM 2 and new agricultural growth have led to a strong and diverse agricultural export sector. The recent rise of the dollar and decrease in inflation have improved Uruguay's competitiveness with the US and EU. Despite the ongoing negotiation of a free trade agreement with the EU, Brazil remains a key destination for Uruguayan exports.

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

Original content

Although expected, the data is still important: exports of goods totaled US$ 1,076 million in October, up 10% year-on-year; they have accumulated US$ 10,807 million in the first 10 months of the year, an increase of 14%. Depending on what happens in the last two months, it is possible that the record reached in 2022 will be surpassed; otherwise, it will be close. The protagonists of the increase are soybeans and cellulose, the first due to the post-drought recovery, the second due to the new UPM plant, the new investment that consolidates Uruguay as one of the main exporters of Eucalyptus fiber in the world. Wheat sales also add significantly and, to a lesser extent, sales of wool and leather, in their various forms. In the case of cellulose, prices have had a downward adjustment in recent months, due to the increase in global supply and some weakness in key markets such as China and Europe. It is no coincidence that, in light of this scenario, sales to the US have increased, ...

Source: Agromeat