Soybean Supplies Seen Ample on U.S. Harvest: Oil World

Soybean Supplies Seen Ample on U.S. Harvest: Oil World

After three years of declines, U.S. soybean inventories will see a notable recovery as growth of supplies will exceed the growth of demand pointing to a further decline in prices according to Oil World.  Combined soybean inventories for the U.S., Brazil, and Argentina, the world’s top three producers, will likely hit 51 million tons by September 1st – 5.1 million tons more than a year earlier. And as supplies increase upon harvest, the combined stockpiles could reach 154 million tons by December of this year – 16.7 million tons more than a year before.  Over the past year soybean futures on the Chicago Board of Trade (CBOT) fell 17% on forecasts of a record U.S. crop after a bumper crop in South America.  The U.S. crop could come in at a record 103.4 million tons – 16% above the previous harvest according to the U.S. Department of Agriculture (USDA). The decline in prices is driving up demand for U.S. soybeans and soymeal pushing exports for the four weeks ending July 24th to 81% higher than the same time period a year earlier.  The current conditions indicate that it does indeed take bumper crops in both North and South America to satisfy global demand while still maintaining inventories according to Oil World.

 

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