Brazil trade surplus widens despite strong real

Brazil’s trade surplus in April widened for the third consecutive month, the trade ministry said on Monday, as exports grew at a faster pace than imports despite the strong local currency.

Brazil posted a trade surplus of $1.86 billion last month, up from $1.55 billion in March and a $1.28 billion surplus in April 2010.

A surge in commodities prices and a recovery in global demand have improved Brazil’s trade balance over the past few months, which may lead the government to revise upward its surplus forecast for the year, currently at $12 billion to 13 billion.

In 2010, Brazil’s trade surplus dwindled to $20.3 billion from $25.3 billion the previous year as the fastest economic expansion in nearly three decades, coupled with a strong currency, increased demand for imports.

In April, exports reached $20.17 billion, up from $19.29 billion in March and $15.16 billion in April last year.

Imports last month totaled $18.31 billion, compared with $17.73 billion in March. In April 2010, imports were $13.88 billion.

Brazil is a major exporter of food and mineral commodities, including soybeans, beef and iron ore.