Revenues should reach US$ 100 bi with commodities
Folha de S. Paulo - 03/16/2008
Brazil may have record earnings of US$ 100 billion with the exportation of commodities this year, compared to nearly US$ 75 billion in 2007, a growth of 33.3%. The high prices of the main products exported by the country, the increasing global demand, record harvests, the boom of the biofuels and the low supplies are leading to this result, which gives support to the trade balance of the country, irrespective of the valued Real and the boom of the importations. In the agricultural sector, soy is the best example of this expansion. The current prices exceed those from the same period of 2007 by 82%. Regarding metals, iron ore increased 65% in the period. Commodities are in their seventh consecutive year of high, leveraged by the vigorous growth of the global economy and emerging giants such as China and India. At the moment in which the financial markets go through a severe crisis in the USA, the commodities still work as means of safely diversifying investments. With the agricultural commodities alone, US$ 74 billion must come into the country this year, standing out soy and meats, compared to US$ 58 billion in 2007. In relation to metals, it is estimated the inflow of US$ 24.5 billion this year, 70% extracted from iron ore. The balance of the agricultural sector must get near US$ 62.2 billion this year, while that of minerals may reach US$ 11.7 billion, amounting to a combined balance of nearly US$ 74 billion. The market projects the total balance of the trade balance in nearly US$ 30 billion this year, which evidences the reliance of the Brazilian exportations on the commodities. If the trade surplus is fairly positive for Brazil, it also generates new expenditures, as it is the case of the wheat the country imports, also at a record price. The country depends on the foreign market for its supply and will spend US$ 2.1 billion to import the product in 2008. Regarding the price of the imported coal, it may increase up to 100% and generate expenditures of US$ 3 billion in 2008, compared to the US$ 1.8 billion from 2007. Likewise, the inputs for the processing of fertilizers are more expensive.