The world's soybean stocks are larger than previously forecast. This was reported yesterday by the USDA and justified this with larger harvests in Brazil and Argentina.
In its WASDE monthly report, the USDA yesterday estimated the final soybean stocks for the 2019/20 season at 102.44 million tons. In February the estimate was 98.86 million tons. Analysts had previously assumed 99.33 million tons.
Larger stocks in times of the Corona crisis unsettle the providers.
The USDA now expects to harvest 126 million tons in Brazil, 1 million tons more than before. In Argentina, production is expected to be 54 million tons, also 1 million tons more than previously expected.
To the surprise of market participants, the estimates of corn stocks were also revised upwards, from 296.84 million tons to now 297.34 million tons. The US government experts are still assuming that global corn demand will remain stable.
If that were the case, the United States would have 100 million tons of bushels of corn and 150 million bushels of soybeans too much.
Source
HANSA Terminhandel
