High international prices cushioned drop in shipments of soybean products: Paraguay

According to the Foreign Trade report of the Central Bank of Paraguay (BCP), the export volume of soybean products suffered a significant drop from January to November this year due to the fall in the harvest because of the significant drought affecting the country the previous year.

The report indicates that shipments of flour and oil closed in November with a reduction of 29% and 30%, respectively, compared to the same period in 2021. Specifically, during the 11 months of this year, Paraguay exported 359,508 tons of soybean oil, while for 2021, it reached 515,687 tons.

According to Productiva's analysis on revenues, the decrease was not as pronounced due to good international prices that helped cushion the drop in volume. Until this month, the product was marketed at US$1,439 per ton, an increase of 31% while in the months of last year it was quoted at $1,095 per ton.

With these values, as of November this year, soybean oil exports generated $517.6 million, a year-on-year decrease of 8.4% compared to $561.1 million in the period corresponding to the previous year.

Income

Regarding flour, up to November 2022, 1.23 million tons were shipped, generating an income of $581.8 million. In the same period of 2021, Paraguay had exported 1.72 million tons worth $707.7 million, a reduction of 29% in volume and 17% in values.

Regarding the marketing price, $473 was paid for domestic soybean meal, $66 more than the previous period, whereas at the end of November of last year, the value paid reached only $407. Next year, they expect better results in shipments with the projection of more enhanced production due to favorable weather.