Second largest soybean harvest on record worldwide but is it real?

July 30, 2017 |

In Germany, UFOP reports that in the running marketing year, farmers are expected to bring in the second largest soybean harvest on record worldwide. This suggests ample supply – but reality is arguably different. Stocks are even projected to decline slightly at the end of 2017/18. Large harvest amounts lead to lower price levels and boost demand. Current estimates see global demand for soybeans rising to 345.3 million tonnes (up 14 million tonnes from 2016/17).

According to Agrarmarkt Informationsgesellschaft (AMI), this figure would only just exceed the anticipated production of 345 million tonnes and, consequently, lead to a reduction in stocks. Demand could lower stocks by more than 1 million tonnes to 93.5 million tonnes. In purely arithmetic terms, the projected 2017/18 soybean ending stocks would cover demand for 99 days. A year ago, ending stocks would have lasted one week longer. These prospects limit the scope for downward movement in prices.

 

Category: Fuels

Thank you for visting the Digest.