The crop forecast for Argentina has been lowered again considerably, which has also reduced consumption and export estimates.
In its latest report, the US Department of Agriculture (USDA) expects the global soybean crop in 2022/23 to reach around 375 million tonnes.
This would be down just under 8 million tonnes from the February forecast, but up 17 million tonnes on 2021/2022.
The decrease in the forecast compared to the previous month is mainly based on the drastically lowered outlook of Argentine production.
The country has been struggling with continued dryness and extreme heat for several weeks, which is hampering yield prospects further.
Argentina is expected to harvest only around 33 million tonnes of soybeans, 8 million tonnes or just under one fifth less than projected in February.
With regard to other key soybean producing countries, such as Brazil, the US and India, the USDA holds on to its previous month's forecast.
World consumption is seen at around 371.1 million tonnes, down 5.3 million tonnes from the February forecast.
Nevertheless, this translates to an increase of almost 9% on the previous marketing year.
The USDA lowered its consumption forecast especially for Argentina, to around 41 million tonnes in the current crop year.
This is down 3.6 million tonnes from the February estimate and down 5.1 million tonnes on 2021/22.
According to investigations conducted by Agrarmarkt Informations-Gesellschaft, China's consumption is also likely to decline, more specifically just about 2.0 million tonnes to the projected 113.3 million tonnes.
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