Commodity-Dependent Economy: Soybeans, Oil, and Iron Ore Are the Products with the Highest Export Index in the First Half

Written by Daiane Souza

Published on 17/08/2022 at 08:34

Updated on 17/08/2022 at 08:36

Fonte da imagem: Pixabay

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Brazil’s Dependence on Commodities (Mostly Soy and Oil) Can Be Harmful in the Long Run, Especially with the High Dollar Making Agribusiness Prefer Exporting to Importing, Impacting Internal Inflation Rates.

Commodities: Between January and May, soybeans accounted for about 18% of Brazil’s entire economy regarding exports, attracting over US$ 24 billion in investment. In second place were oil and petroleum products, which garnered a similar percentage. The data belongs to the Ministry of Industry, Foreign Trade and Services (MDIC), shared by Invest News on Monday, August 15.

Soybeans are widely used in the production of some fuel oils and are also part of cultural food. For this reason, it has been attracting the attention of countries that rely on purchasing commodities to feed their population.

Short-Term Economic Benefits May Lead to Brazil’s Dependence and Long-Term Stagnation

Analysts estimate that the economy in Brazil is likely to stagnate if the country does not invest in science, innovation, and technology. Evidence of this is the high inflation, which has been accumulating in double digits and has been influenced by commodities, as the price of foods such as soybeans has risen significantly because agribusiness opted to sell abroad, depleting stocks in the country and causing impacts from product shortages and price increases, not only in food but also in the construction sector.

ARTICLE CONTINUES BELOW

With Brent Oil Accumulated at 32.89%, and War Between Ukraine and Russia, Offshore Companies in Brazil Profit

On this Wednesday, August 17, Brent oil has seen an accumulated increase of at least 32%, despite its slight decline in recent months, the commodity has inflated by 140%. Given the war between Ukraine and Russia, many offshore companies in the country have increased their oil exports and thus secured record earnings in the first months of this year. Petrobras, Shell, and other oil companies have reported record profits.

Iron Ore Is Also on the List of “Export Favorites”

Iron ore saw a drop of 35.55% after peaks last year due to low mining productivity. According to data shared by the federal government, it is estimated that between January and May, the export value exceeded US$ 11 billion. Following the metal, which benefits the mining sector, is beef, primarily exported to South American countries, which reached US$ 4 billion in negotiations.

When Has Brazil Received Export Earnings Per Year?

In 2021, Brazil had one of the highest export values, according to the Ministry of Industry, exceeding US$ 280 billion in exports (mainly of commodities). Despite this, it is estimated that in 2022, there will be a surpassing of this peak, as only by May, the value of negotiations reached over US$ 131 billion. In 2020, when the COVID-19 pandemic began, there was a decrease to US$ 209 billion.

Commodity-Dependent Economy: Soybeans, Oil, and Iron Ore Are the Products with the Highest Export Index in the First Half

Brazil’s Dependence on Commodities (Mostly Soy and Oil) Can Be Harmful in the Long Run, Especially with the High Dollar Making Agribusiness Prefer Exporting to Importing, Impacting Internal Inflation Rates.

Short-Term Economic Benefits May Lead to Brazil’s Dependence and Long-Term Stagnation

With Brent Oil Accumulated at 32.89%, and War Between Ukraine and Russia, Offshore Companies in Brazil Profit

Iron Ore Is Also on the List of “Export Favorites”

When Has Brazil Received Export Earnings Per Year?

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Commodity-Dependent Economy: Soybeans, Oil, and Iron Ore Are the Products with the Highest Export Index in the First Half

Brazil’s Dependence on Commodities (Mostly Soy and Oil) Can Be Harmful in the Long Run, Especially with the High Dollar Making Agribusiness Prefer Exporting to Importing, Impacting Internal Inflation Rates.

Short-Term Economic Benefits May Lead to Brazil’s Dependence and Long-Term Stagnation

With Brent Oil Accumulated at 32.89%, and War Between Ukraine and Russia, Offshore Companies in Brazil Profit

Iron Ore Is Also on the List of “Export Favorites”

When Has Brazil Received Export Earnings Per Year?

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

Under nearly 2 kilometers of ice in Antarctica, scientists have discovered an ancient landscape sculpted by rivers up to 60 million years ago, the size of Wales, preserved as a time capsule that could help predict the advance of ice towards the ocean.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

Bricklayers off the scaffolding? New system uses autonomous drones to position bricks and apply adhesive in the air, creating walls with two flying robots working as a team.

A man takes a simple farm cattle trough and transforms it into a fully motorized boat by lining the tank with plywood, sealing everything with epoxy, and installing an outboard motor.

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China has inaugurated in Qingdao what it considers the world’s first solar power plant fully installed over seawater, with capacity for industrial use and large-scale generation, featuring panels that rise and fall with the tides.

A man takes a simple farm cattle trough and transforms it into a fully motorized boat by lining the tank with plywood, sealing everything with epoxy, and installing an outboard motor.

São Paulo sets up a “Wall of Fire” with satellites, artificial intelligence, thousands of cameras, and a partnership with Waze to tackle a severe El Niño, anticipate fire outbreaks, and protect 613 municipalities during the most critical phase of the year.

Brazilian works at 5,200 meters altitude in the Atacama Desert, where telescopes face -45°C and winds of 100 km/h to search for the oldest light in the Universe and investigate the beginning of everything nearly 14 billion years ago.