Soybean production around the world “could match last season’s record,” helping to boost the global stockpile to a new record, said the International Grains Council in a monthly report. Soybean stocks would rise despite a sharp 3 percent climb in consumption that includes larger imports by China, the world’s larger buyer. “Brazil is seen as the largest exporter in 2015/16, its shipments slightly exceeding those by the United States,” said IGC in its Grain Market Report. The United States is harvesting its second record soybean crop in a row. USDA estimates the season-average price for soybeans will drop below $9 a bushel for the first time in nine years.
The IGC said its index of soybean prices worldwide is down by 3 percent from October, reflecting “better than expected harvest results in the United States and an improvement in planting conditions in South America,” where Brazil and Argentina grow almost half of the world soybean crop, compared to the U.S. share of 37 percent. With a large crop and large supplies, soybean prices are down by nearly 22 percent from a year ago, said IGC. The soybean crop this season is forecast at 321 million tonnes and the carry-over supply at 47 million tonnes.