Stock exchange news. On July 13 another report of US Department of Agriculture was issued. The report highlighted world production, stocks, consumption, export, and import of agricultural goods. We are interested in soybean oil.
Production. According to this report, the world forecast of production during 2011/12 marketing year has been lowered by 100 ths. Pounds in comparison with last month and amounts to 43.287 mln. pounds. The decline mostly happened due to China, whose share amounts to 23%. The second position in terms of production is occupied by the USA – 21%, then Argentina – 18%, and Brazil – 16%; 22% makes up the share of the rest of the countries.
One is to draw attention to the decline of production in China: the forecast in June was at the level of 11 mln. tons, whereas in July it was shortened by 162 mln. tons. This is connected with the policy held by local government on regulating the prices of oils, which amid high prices of soybeans makes their processing unprofitable. It is known that such state of affairs will last at least till mid-August.
In the USA, despite shortage of soybeans crop areas, the forecasts of oil production during 2011/12 marketing year remained unchanged and amount to 8.5 mln. pounds.
It can be observed from the chart below that world production from 2008 to 2010 has risen by 15% and amounts to 41.872 mln. pounds.
Stocks. For the last 5 years the world’s transit
The dynamics of stocks’ change can be traced by the following chart:
According to USDA forecast dated July 13, the USA has the largest stocks – 1 mln. pounds. ItisfollowedbyBrazil, China, Argentina, andEuropeanUnion, whose stocks vary in the range of 250-200 ths. pounds. The world’s stocks were increased in comparison with the previous month by 100 ths. tons and amount to 2.481 mln. tons.
Consumption. During the last years the consumption of Soybean oil has also increased. If in 2007 world consumption was at the level of 35.5 mln. tons, then by 2011 is has declined by 2.75 mln. Tons; as for 2011/12, an increase by 6.5 mln. tons in comparison with 2007 is forecast. At the same time, the forecast in July is lower then in June by 86 ths. tons and amounts to almost 42 mln. tons.
The dynamics of world consumption can be traced by the following chart:
China (29%), the USA (19%), and Brazil (13%)are the leaders of consumption. The increaseof using oil in the production of biofuel shall also be admitted. For the last three years it has increased more than twice in the
