“A record oilseed crop will be produced in Argentina this year…”
Argentina’s 2010 soybean crop is likely to rise to 53.3 million tonnes from 32 million tonnes in 2009, Hamburg-based oilseeds analysts Oil World forecast on March 30.
This was up by 1.3 million tonnes from Oil World’s previous estimate on March 2.
It also raised its forecast of Brazil’s 2010 soybean crop to 66 million tonnes, a more moderate rise of about 500,000 tonnes from its previous forecast and up from 57.5 million last year.
“A record oilseed crop will be produced in Argentina this year due to abundant and timely rainfall in most parts of the country in January to March 2010,” Oil World said.
Argentine farmers had planted 18.9 million hectares of soybeans for harvesting in early 2010, up from 17.5 million hectares in last year’s drought-reduced harvest, it estimated.
Crop disease, especially the Asian rust fungus, means Brazil’s soybean crop was not facing quite such a large rise as in Argentina, it said.
“The global market is in transition from scarcity to ampleness of soybeans as a result of the record crops in South America,” it said.
The global 2009-10 soybean crop is forecast by Oil World to rise 44 million tonnes on the year to 255.5 million tonnes, largely because of the sharp increase in Argentina.
This would be above Oil World’s forecast 2009-10 season consumption of 234.4 million tonnes, up 9.9 million tonnes on the year.
Global 2009-10 season ending soybean stocks were forecast by Oil World to increase by 21.1 million tonnes on the year to 68.1 million tonnes.