Trade Balance in Brazil

Measures the difference between the value of Brazil's goods exports and imports, recorded FOB in US dollars. A positive balance (surplus) means Brazil sells more abroad than it buys; a negative one (deficit), the reverse. This is the customs trade balance compiled by the Foreign Trade Secretariat (SECEX/MDIC), the reading markets follow.

SECEX records export and import transactions cleared through Brazilian customs on an FOB basis, with the balance being exports minus imports. A weekly month-to-date estimate is followed by the monthly close on the first working day of the next month, later revised in Comex Stat. It is reported in millions of US dollars.

It is a gauge of the external sector and the Brazilian cycle. A large surplus, driven by commodities such as soybeans, iron ore, oil and corn, supports foreign-currency inflows and favours the real, while a deteriorating balance can weigh on the exchange rate. Markets watch the preliminary monthly close closely.

It does not match the trade balance in the central bank's balance of payments (different concept and adjustments). It is highly seasonal and sensitive to commodity prices and the agricultural harvest calendar, and the preliminary figure is revised in later releases.