High prices cause commodities to make up 70% of export basketOct, 13, 2021 Posted by Ruth Hollard
The rise in prices resulting from the various shocks of the pandemic contributed to the advance of commodities in Brazilian shipments like never before. From January to September this year, they reached a historic mark for the period, 69.7% of the total exported value. In the same months of 2020, it was 67.5%. This year’s level is almost ten percentage points above that of 2019, of 60.6%, a level around which the share orbited for practically ten years, always comparing the same nine months.
The advanced data for the valuation are from the Foreign Trade Indicator (Icomex), collected by the Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV Ibre) based on official data. The Icomex bulletin with more details will be released on the 18th.
See the month-by-month historical charts below for two important commodities exported by Brazil: soybeans and corn. Data are from DataLiner:
Brazilian Soy Exports (HS 1201) | Jan 2018 to Aug 2021 | WTMT
Brazilian Corn Exports (HS 1005) | Jan 2018 to Aug 2021 | WTMT
In addition to the current scenario, data from Icomex show that over the last two decades, there has been a concentration of exports in fewer and fewer products and a process of insourcing in which goods to be exported have less and less added value, even among commodities. The pandemic accelerated the phenomena, highlighting the need to debate structural changes, analysts point out, despite the current robust trade surpluses that help to calm the accounts of the external sector.
Source: Valor Econômico
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