by PressOrganic soybean producers received support from Perdue AgriBusiness
Organic soybean producers will participate in the Perdue AgriBusiness program
One of the largest U.S. grain corporations, Perdue AgriBusiness, announced the launch of a program in which organic soybean producers will participate. It is the first contract initiative designed for SOYLEIC high oleic soybeans.
Farmers from Virginia, Maryland, North and South Carolina, and Delaware will participate in the program. They will be awarded contracts to grow SOYLEIC soybeans, which have an oleic acid content of 80-85%. The production area should be up to 10,000 acres. This oilseed variety is good for the cardiovascular system and is included in a large number of food products.
Earlier this year, the USDA revised soybean production projections, lowering expectations for Brazil. It should be noted that in such cases, the U.S. Department of Agriculture acts very cautiously and does not rush to adjust the data, but the ministry was forced to do it taking into account the supply and demand ratio. As a result, the forecast for Brazil was reduced by 5 million tons to 139 million tons of soybeans. Local agencies also followed the example of USDA and corrected expectations, but to the level of about 140 million tons. Experts note that lowering of forecasts negatively affects price dynamics for soybeans, which puts pressure on other oilseeds as well.
As for global production, here the forecast was reduced by 8.4 million tons to 619 million tons. For comparison, in the previous season the harvest was almost 604 million tons. Lower expectations are due to a decline in Brazil, as well as in Paraguay and Argentina. The situation was not saved by the fact that American and Indian farmers increased the production of soybeans.
The forecast of export deliveries on the world market was also reduced, it is expected at the level of 194.4 million tons, and last season it was about 191 million tons.
World-ending stocks were also adjusted by almost 7 million tons, their volumes are expected to be around 107 million tons. This figure is 6% less than it was in the previous marketing year. The reason was a decrease of world stocks not only of soybeans but also of rapeseed.
The main importer of oilseeds is China, its purchases are forecasted in the range of 100 million tons. Moreover, this figure was not affected by reduced consumption by pork producers.
As for soybean futures, they continue to grow on the Chicago exchange, though without sharp jumps as it was last year.
Unlike soybeans, forecasts for rapeseed were increased by almost 1 million tons to about 69 million tons. Increased production in Australia and the European Union played an important role in this.