Alex Bobrov
Last week Argentina completed its harvesting season. The country is the world’s 3rd largest producer and exporter of soybeans and number 1 in terms of soybean oil export.
According to the Argentinean Department of Agriculture, the country harvested 48.8 mmt (million metric tons), which is 1.6% less than expected by the Department of Agriculture. The sown area this marketing year is equal to 18.5M hectares.
The sowing campaign in India is almost finished. India is among the world’s top 5 producers of soybeans. According to the Soybean Processors Association of India, the sown area is expected to reach 9,31M hectares.
In the USA:
- Last week’s export of soybeans is roughly equal to 5,15 M bushels or slightly over 149K tons ( 1,5 times more than a week before).
- As of July 25th, 60% of the crop is in bloom, which is 13% lower than a year ago. Only 16% is ripening. It is twice as low as in 2010. The overall condition of the crop is “good” (3% - very bad, 8% - bad, 27% - satisfactory, 49% - good, 13% - excellent).
According to the Department of Commodity Trading, , the following factors will keep supporting the market of soybeans: hot weather in the US, delayed ripening, growing demand shown by importers, declining production in Argentina. If the weather conditions in the US become more favorable, the market of soybeans may feel some pressure.
Alex Bobrov
