Stock exchange news. USDA report dated March 9th proved bullish for soybeans. All factors have been lowered. If decline of export, import, and processing casts pressure on price, then decline of production and end stocks will support it.
In March the predicted global production of soybeans dropped by 6.4 mln. tons in comparison to February predictions, which has been mostly caused by shortage of production in South America (Brazil – by 3.5 mln. tons, Argentina – by 1.5 mln. tons). Production volume is expected to drop by 19 mln. tons in comparison to last year.
Predicted volumes of export and import have also been lowered by 2 и 1.5 mln. tons accordingly. In this reference, import from China is expected to drop by 0.5 mln. tons, to 55 mln. tons, and from European Union by 0.5 mln. tons. Beans processing has also dropped to 224.8 mln. tons, which is 2.6 mln. tons less than previous time, but 4 mln. tons more than last year. End stocks have dropped by 3 mln. tons in comparison to last month and almost by 10 mln. tons in comparison to last year.
Export sales during the week of Feb.23 – Mar.1 have amounted to 1.076 ths. tons, which is higher than during the equal period for last two years.
According to Commodity Trading Department of , in mid-term shortage of production and end stocks will provide more support to the price, as despite lower demand (shortage of export, import, and beans processing) 2011/12 marketing year is expected to be a deficit one.
