Brazil: Soybean Oil Market 2024

Soybean Oil Market Size in Brazil

The Brazilian soybean oil market declined remarkably to $X in 2022, shrinking by -15.8% against the previous year. Overall, consumption continues to indicate a relatively flat trend pattern. Over the period under review, the market hit record highs at $X in 2019; however, from 2020 to 2022, consumption stood at a somewhat lower figure.

Soybean Oil Production in Brazil

In value terms, soybean oil production reduced slightly to $X in 2022 estimated in export price. Over the period under review, production continues to indicate a slight slump. The pace of growth was the most pronounced in 2017 with an increase of 38% against the previous year. Soybean oil production peaked at $X in 2012; however, from 2013 to 2022, production failed to regain momentum.

Soybean Oil Exports

Exports from Brazil

For the third year in a row, Brazil recorded growth in shipments abroad of soybean oil, which increased by 54% to X tons in 2022. Overall, exports recorded pronounced growth. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

In value terms, soybean oil exports surged to $X in 2022. Over the period under review, exports saw a prominent increase. The most prominent rate of growth was recorded in 2021 when exports increased by 165% against the previous year. Over the period under review, the exports attained the maximum in 2022 and are expected to retain growth in years to come.

Exports by Country

India (X tons) was the main destination for soybean oil exports from Brazil, accounting for a 62% share of total exports. Moreover, soybean oil exports to India exceeded the volume sent to the second major destination, Bangladesh (X tons), sixfold. The third position in this ranking was held by China (X tons), with a 6.2% share.

From 2012 to 2022, the average annual growth rate of volume to India totaled +17.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: Bangladesh (+10.5% per year) and China (-14.7% per year).

In value terms, India ($X) remains the key foreign market for soybean oil exports from Brazil, comprising 60% of total exports. The second position in the ranking was taken by Bangladesh ($X), with a 10% share of total exports. It was followed by China, with a 6.1% share.

From 2012 to 2022, the average annual growth rate of value to India totaled +20.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Bangladesh (+13.5% per year) and China (-12.7% per year).

Export Prices by Country

The average soybean oil export price stood at $X per ton in 2022, rising by 27% against the previous year. In general, the export price enjoyed a pronounced increase. The most prominent rate of growth was recorded in 2021 an increase of 74%. The export price peaked in 2022 and is expected to retain growth in the near future.

Average prices varied somewhat for the major foreign markets. In 2022, amid the top suppliers, the highest price was recorded for prices to Venezuela ($X per ton) and Iran ($X per ton), while the average price for exports to India ($X per ton) and China ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Iran (+3.1%), while the prices for the other major destinations experienced more modest paces of growth.

Soybean Oil Imports

Imports into Brazil

In 2022, supplies from abroad of soybean oil decreased by -75.3% to X tons, falling for the second consecutive year after two years of growth. Over the period under review, imports, however, enjoyed a significant expansion. The growth pace was the most rapid in 2015 when imports increased by 38,757% against the previous year. Imports peaked at X tons in 2020; however, from 2021 to 2022, imports remained at a lower figure.

In value terms, soybean oil imports contracted rapidly to $X in 2022. Overall, imports, however, enjoyed significant growth. The growth pace was the most rapid in 2015 with an increase of 5,747%. Imports peaked at $X in 2020; however, from 2021 to 2022, imports remained at a lower figure.

Imports by Country

In 2022, Paraguay (X tons) constituted the largest supplier of soybean oil to Brazil, accounting for a 81% share of total imports. Moreover, soybean oil imports from Paraguay exceeded the figures recorded by the second-largest supplier, Bolivia (X tons), sixfold. The third position in this ranking was held by Uruguay (X tons), with a 4.2% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Paraguay totaled +35.8%. The remaining supplying countries recorded the following average annual rates of imports growth: Bolivia (+12.6% per year) and Uruguay (+125.9% per year).

In value terms, Paraguay ($X) constituted the largest supplier of soybean oil to Brazil, comprising 83% of total imports. The second position in the ranking was taken by Bolivia ($X), with a 10% share of total imports. It was followed by Uruguay, with a 5.1% share.

From 2012 to 2022, the average annual growth rate of value from Paraguay stood at +36.9%. The remaining supplying countries recorded the following average annual rates of imports growth: Bolivia (+11.5% per year) and Uruguay (+165.5% per year).

Import Prices by Country

In 2022, the average soybean oil import price amounted to $X per ton, picking up by 10% against the previous year. In general, the import price, however, continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2013 an increase of 129%. Over the period under review, average import prices reached the peak figure at $X per ton in 2014; however, from 2015 to 2022, import prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Uruguay ($X per ton), while the price for Bolivia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Uruguay (+17.5%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform

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