The Brazilian Ministry of Development, Industry and Foreign Trade disclosed this Monday, September 3, the balance of trade figures for the month of August, and for the first eight months of the year. The survey shows that imports are growing at a higher rate than that of exports.
In the first eight months of the year, exports rose by 15.9%, to stand at US$ 102.4 billion. Imports, on the other hand, grew by 27.8%, to reach US$ 74.9 billion.
Therefore, the accumulated trade surplus (exports minus imports) from January until August increased to US$ 27.5 billion, a 7.51% reduction compared with the US$ 29.7 billion recorded during the same period of 2006.
In the month of August, imports also grew proportionally more than exports, despite the fact that the two sectors have reached new record highs. Foreign sales stood at US$ 15.1 billion, an increase of 6.94% over the previous month. Imports were also the highest this year, at a monthly volume of US$ 11.5 billion and an increase of 7.36% over the month of July.
The trade balance surplus for August stood at US$ 3.535 billion – 5.61% more than in the previous month, but 22.37% less than recorded in August last year.
Wheat Production Doubles
The Brazilian wheat production should double this year, to reach four million tons. The forecast was made last week, during a meeting of the Sector Chamber for the Production Chain of Winter Crops, in the city of Esteio, in the southern Brazilian state of Rio Grande do Sul. The Chamber is comprised of government officials and representatives of the Brazilian production sector in the field.
"The agricultural policy adopted by the government has encouraged farmers. We believe that the Brazilian production will reach four thousand tons, the equivalent of 40% of domestic consumption," said the executive secretary at the Chamber of Winter Crops, and general manager for Cereals and Annual Cultures at the Brazilian Ministry of Agriculture, Silvio Farnese.
To Farnese, the minimum price policy underway for 400 Brazilian reais (US$ 203) per tonne is another great stimulus to Brazilian wheat producers. "Another advantage for Brazilian wheat producers is the worldwide stabilization of production, which represents an increase in the price of the commodity that is also reflecting in the Brazilian market," he said.