Soybean prices rise on US harvest, Argentina rain concerns
In Germany, UFOP reports that an “unexpected lowering of the harvest forecast for US soy and continued concerns about rain damage in Argentina has caused the balance between supply and demand to narrow.”
According to the most recent 2016/17 USDA report, world soybean production is set to grow further, rising by just under 6 per cent from the previous year to around 338 million tonnes. Surprisingly, however, USDA lowered its 2016 US crop outlook by more than 1.4 million tonnes to 117.2 million tonnes. This adjustment will likely be offset by the 104 million tonne record estimate for Brazil, but global supply will probably exceed estimated demand by merely 5 million tonnes. Argentine weather conditions are currently giving rise to concerns. Agrarmarkt Informationsgesellschaft mbH (AMI) reports that over the past few weeks heavy rainfall once again caused flooding. USDA maintained the previous month’s forecast of 57 million tonnes for Argentina. However, other sources pegged crop figures 3-7 million tonnes lower. Consequently, soybean prices climbed by virtually 3 per cent, temporarily reaching the highest level in six months.
Category: Fuels
