Global forecasts point to lower production, crushing, exports and inventories…

The reduction in US soybean ending stocks should keep prices high, points out TF Consultoria Agroeconomia. The conclusion is based on changes in US soybean supply and use for 2021/22, which include higher exports and lower ending inventories compared to the WASDE report released last month by the USDA.

According to the report, soybean exports were increased by 40 million bushels to 2.09 billion total, with lower production and reduced exports to South America. Soybean ending stocks are projected at 285 million bushels (7.75 MT), down 40 million (1.0 MT) from last month. According to TF market analysts, this is bullish for the market.

With soy oil prices rising, the USDA points out, its use for biofuel has been reduced this month: “Soybean oil exports increase in response to reduced global sunflower oil trade and tighter global vegetable oil supplies . Soy and product prices are all high this month”.

“Average US soybeans price for 2021/22 is forecast at $13.25 a bushel, up 25 cents. The price of soybean meal is forecast at US$420 per short ton, an increase of US$10. Soybean oil price rises 2 cents to 68.0 cents per pound,” adds the US Department of Agriculture.

WASDE WORLD

Also according to the USDA, global soybean supply and demand forecasts for 2021/22 include lower production, crushing, exports and inventories. Global soy production is reduced by 10.1 million tons to 353.8 million. Brazil’s crop was reduced by 7.0 million tons to 127 million, Argentina was reduced by 1.5 million tons to 43.5 million, Paraguay was reduced by 1.0 million tons to 5.3 million and Uruguay is reduced by 0.6 million to 2.0 million.

“While global soybean crushing was reduced by 5.0 million tonnes at a slower-than-expected crushing pace for China and lower supply from South America, sunflower seed crushing was reduced another 2.2 million mainly to Ukraine”, conclude the Americans.

Source:https://www.agrolink.com.br/noticias/soja-deve-seguir-em-alta–usda_463154.html