Argentina's soybean stocks are designed to 2015/16
Argentine soy farmer used the soybean stocks as inflation protection against the peso losing value in recent years. It was just so much was sold by the soy harvest, as necessary for the urgent financing. In the past rising soy prices confirm this behavior, but the Argentine currency loses annually approximately 40% of its value.
In the meantime the overhang stocks end of 2014/15 on more than half of a whole generation of year amassed themselves. The now imminent harvest promises record results because of weather history almost as ideal to label. The estimates for 2015 range from 56 to 58 million tonnes.
To expected harvests exceed the capacities of other stock management. Soybean prices have fallen significantly in addition in the last half year. In the face of the global large soy crops in the course of this year is the tendency of a further price decline. Significantly degrades the efficiency of the storage industry. Now, also the interest rates have risen to over 30%.
The increased sales of soy farmershave in recent years. The demand from the processing industry has grown. Market experts expect that in the course of the financial year April 15 to March 16 approximately 10 million tonnes are mined soy beans out of the surplus stocks.
The significantly increasing supply of soy from Argentinais in conjunction with the large harvest and the destocking. As the beans are processed into about 70% in their own country, a predominant part in the form of soybean oil and soybean meal on the market will be. Direct sales of beans - will proportionately increase especially after China - due to high availability.
The expected increase in supply will affect price pushing on the world market. While the South American record harvests in the first join half of 2015 with the high expectations of the North American crops in the autumn 2015.
The forecasts for the upcoming Argentine soy crop 2016 were already downgraded to 55 million.
