USDA analysts in the June review, updated the forecast of soybean processing volumes in the world in 2023/24 MY – from 332.31 mln tonnes to 331.91 mln tonnes, which is still significantly higher than the expected result of 2022/23 MY (312.2 mln tonnes).
In particular, the forecast of oilseed processing for Argentina was decreased by 0.5 mln tonnes to 36 mln tonnes (+6 mln tonnes for the season).
It is worth noting that the adjustments of the oilseed processing volumes in the world in 2023/24 MY led to the increase of soybean and soybean oil quotations on the most active July contract on CBOT as of June 9, to $509.4 (+8.5) per ton and $1203.5 (+46.1) per ton, respectively. However, already on June 10, futures fell in price (-$5.1 per ton to $504.3 per ton for soybeans and -$13.4 per ton to $1190.1 per ton for soybean oil) amid the current low demand for products from the United States.
The forecast of global soybean ending stocks in 2023/24 MY was revised from 122.5 mln tonnes in May to 123.3 mln tonnes. The high ending stocks are expected in the US – 9.52 (+0.4) mln tonnes, Brazil – 40.8 (+0.5) mln tonnes and the EU – 1.78 (+0.2) mln tonnes, while the figure for Argentina is reduced to 23.95 (-0.1) mln tonnes.
The forecast for global soybean production was left virtually unchanged at 410.7 (+0.1) million tons, in particular, due to an upward adjustment for the EU – to 3.22 (+0.1) million tons. At the same time, the forecasts of soybean harvest in 2022/23 MY for Brazil were increased by 1 million tons to 156 million tons, while for Argentina they were decreased by 2 million tons to 25 million tons.
Source: Apkinform