The drop in international prices for several products, the economic crisis in Argentina and lower demand for soybeans in China caused Brazil's trade balance to close October 2019 with a surplus of US$ 1.206 billion, the Ministry of Economy, Industry, Foreign Trade and Services said. The result is 79,2% lower than in October 2018 ($ 5.792 billion).
So far this year, the trade balance has accumulated a surplus of US$ 34.823 billion, 26,7% less than in the same period last year. The value is the lowest for the period from January to October since 2015.
Exports totaled US$ 18.231 billion last month, down 20,4% than in October last year according to the daily average criterion. The largest falls were recorded in exports of oil crude oil (-US$1.6 billion compared to October 2018), due to lower international prices and low growth in Brazilian production, and semi-manufactured steel (-US$499 million), due to lower international prices and lower demand from the United States.
Another product that had an impact on the fall in exports was the soybean, down US$294 million since October last year, driven by falling foreign prices, a smaller Brazilian harvest and the crisis in pork production in China, which uses Brazilian soybeans to feed pigs. Then comes the $139 million drop in sales of cars caused by the Argentine crisis, and the US$ 111 million drop in mineral exports iron as a result of lower Brazilian production after the Brumadinho MG dam)
According to the Ministry of Economy, exports of other products increased, but not at a pace sufficient to offset the decline in sales of the main exported products. In October, exports of corn (+US$ 488 million), beef (+US$ 187 million), cotton (+US$ 134 million) and pork (+US$ 40 million) increased.
Imports totaled $17.025 billion in October, up 1,1% than in the same month last year. Year-to-date exports totaled US$ 185.437 billion, 7,7% less than in the first ten months of 2018. Imports totaled US$ 150.614 billion, 1,5% less in the same comparison. All variations take into account the daily average.
After the trade balance ended 2018 at $58.959 billion, the second largest positive result in history, the market estimates a smaller surplus in 2019, driven mainly by the recovery of the economy, which reactivates consumption and imports, and by trade tensions between developed countries, which reduces world trade.
Commercial balance registers best result for outubro in five years https://t.co/YFycPP6bhj ? Tânia Rêgo/Agência Brasil@MinEconomy pic.twitter.com/tiyqzSzQ29
— Agência Brasil (@agenciabrasil) November 1, 2019
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