Soybean demand outpaces production in 2016, will reduce but not deplete global stockpiles: UFOP
In Germany, UFOP is reporting that the coming marketing year’s demand for soybeans is set to outpace production by approximately 4 million tonnes. This is the outcome of the preliminary USDA estimate. Nevertheless, supply to the market will be more than sufficient, as ending stocks are expected to decline by 74 million tonnes to 68 million tonnes.
According to this first official forecast, stocks would still be at the fourth highest level on record. The reason for the reduction in stocks is that consumption is projected to climb by around 10 million tonnes, to a historic high of just under 328 million tonnes. At the same time, production is estimated to rise by 8 million tonnes to 324 million tonnes. This is also the largest soybean output in history. According to information published by Agrarmarkt Informations-Gesellschaft (mbH), the surge is first and foremost based on an increased forecast for Brazil and India compared to the previous year. China and India are the main driver in boosting demand, as they have been in recent years.
Category: Fuels
