Newsletter Oil World has again cut its South American 2003/04 soyabean crop forecast and says this will raise demand for US beans later this year.
It now sees Brazil's crop at 52.5 to 53.5 million tonnes from its estimate of 54-55 million tonnes in early March and 52 million tonnes harvested last season.
Argentina's crop is now estimated at 34.6 million tonnes from 34.8 million tonnes last season.
Oil World now says the five main South American producers are likely to harvest only 93.53 million tonnes in 2003/04, down 5.7 million tonnes from estimates in February.
"Part of the effect will be seen in lower than expected exports and crushings in March/August 2004," it said. "But the biggest impact will be seen in a decline in South American stocks as of end-August 2004, which with reduce their exports in September 2004/February 2005 and raise the global dependence on US exports."
"This and the very low end August 2004 US stocks raise the need for a steep increase in this year's US soyabean production".
Comments
Comments are closed.