by PressAnalysts forecast an increase in the soybean crop in the world market
This season’s soybean crop increase: which countries will increase volumes
Analysts revised the previously published forecast of soybean production on the world market. Weather conditions in Brazil and the U.S. contribute to a high crop, due to which experts expect about 380 million tons. This figure is 5% more than previous forecast.
It should be noted that such a volume of harvest for soybeans is a record for the world market. As for global sales, now the interest from China has gone down, and most likely this year’s oilseed trade will decrease by 2% compared to the previous season. If the forecasts of a moderate growth in demand in Asian countries and America come true, then we can talk about a new high for world consumption, its volume will increase by 4%. Stocks will also grow, but for large exporters they will still be rather limited. This situation is explained by the production capabilities of the USA, where there is an increased interest not only from importers, but also on the domestic market. As a result, restocking is extremely slow. On the whole, the increase in global trade is expected to be in the range of 3%, and the dynamics in this case are provided mainly by the demand from the Asian region.
The soybean harvesting campaign is actively going on in the USA now and 34% of the country’s acreage has already been harvested. So far, the rates remain at the level of last season, and the weather conditions are also favorable for the process. American farmers note the good condition of the crops, the share of high quality is about 58% of the total volume. Last year that estimate was 64%.
In addition to soybeans, corn, sorghum and sunflowers are also being harvested in the U.S.. Parallel to this is the sowing campaign of winter wheat.
In Brazil, on the contrary, only soybeans are being planted. Only 4% of the total planned area has been sown so far, but local farmers are working at a good pace. Forecasters predict that in the next few months the country will experience irregular precipitation, likely prolonged dry periods. Despite this, farmers intend to increase the amount of crops compared to the previous season. Soybeans are expected to cover an area of almost 40 hectares, from which they plan to harvest more than 141 million tons of beans.
As for the prices of soybeans and soybean products, they continue to rise. And while demand from China no longer exerts such pressure, the demand for products by biofuel producers is only increasing. More and more countries are tightening regulations on carbon emissions, making the green fuel market more promising. And soy is one of the components of its production.