COMMODITY - EDIBLE OIL SUMMARY
Soy is one of the main products exported by Brazil. According to the National Association of Cereal Exporters (ANEC), Brazil exported 86.6 million tons of soybeans in 2021. In 2023, Brazil exported more than 100 million tons of soybeans. China is Brazils largest soybean importer. Projections indicate a growth in global demand for soybeans, mainly in Asia, which will be a great business opportunity for Brazil.
01Types of Soybeans
Soy is an essential commodity on the global market, and Brazil is one of the main producers and exporters of this grain. There are different types of soybeans that are exported, and they can be classified according to some characteristics:
Yellow Soy
It consists of grains with a yellow, green or pearl-colored seed coat. The interior of the grain is yellow, yellowish, clear or whitish. Up to 10% of the grains may have other colors.
Green Soy
It has a green seed coat. The inside of the grain is also green.
Pearl Soybeans
The seed coat is pearl-colored. The interior of the grain may vary in light tones.
These different types of soybeans meet international demands and contribute to the Brazilian economy.
02Types of Supply Contracts
In Brazil, there are different types of soy commodity supply contracts. These contracts regulate the purchase and sale of soybeans on the market. Some of the main types include:
Soybean Futures Contracts on BM&F
Each soybean futures contract traded on B3 (formerly BM&F) establishes a purchase and sale agreement for 450 bags of 60 kg of this commodity. The price of each contract is established at the time of negotiation, but payment only occurs on its expiration date. It does not provide for the physical delivery of the merchandise, only its financial settlement
Agricultural Partnership Contracts
These are agreements between producers and companies that process soy. They regulate the continuous supply of raw material (soy) for the production of oil or other products.
Spot Contracts
These are one-off transactions, without long-term commitments. They allow the immediate purchase or sale of soybeans
Tripartite Contracts
More sophisticated models that involve three parties: supplier, plant, and third parties. They may include specific clauses related to the quality of the sugarcane, the variety to be planted, and other conditions.
These contracts are essential to guarantee the supply and stability of the soybean market.
03Soybean Export
Brazil is one of the largest producers and exporters of soybeans in the world. Soybeans are a very important agricultural crop and are mainly exported in the form of grains or meal. Here are some details about the types of soybeans that are commonly exported:
Non-GMO Soybeans Grade 2
This type of soybean has not undergone genetic engineering processes. Typically, these soybeans have a natural range of colors, from light brown to dark brown, and come in various sizes. They are sought after by industries and consumers who emphasize non-GMO, organic, or traditional farming practices.
Soybeans are used as raw material for the production of other foods, such as milk, cheese, flour, oil, sauce, and textured protein. In addition, soybeans are used in the production of biodiesel and feed for pigs and poultry. The global demand for soybeans is growing, especially in Asia. China, for example, is the largest importer of soybeans from Brazil. Therefore, soybean export is one of the largest drivers of the Brazilian economy.