Brazil forecast to post US$43bn trade surplus in 2017

Brazil is forecast to post another trade surplus in 2017. Twenty-two experts consulted by ValorData forecast an average surplus of US$43.5 billion that if confirmed will represent a US$100 billion surplus in two years that will help keep the foreign account deficit under control next year. The good results this year and optimistic expectations for 2017 are due to the widespread rise in the price of Brazil’s main commodity exports. Iron showed the most surprising behavior, rising 86% this year. Five of the eight top agricultural commodities produced by Brazil ended the year at higher levels than last year, because of supply and demand fundamentals that should continue having an effect in 2017. Sugar is one example, having finished the year at the highest price in New York since 2012.