Global surge in soybean demand predicted by the ICG
Worldwide soybean output is expected to increase to a record high, according to the International Grain Council (ICG).
The ICG estimates another bumper crop in Brazil, a standard US crop and production increases in smaller soy-countries will assist the market in 2020/21.
After the almost one-fifth decline in production in the past season, the IGC estimates a rebound in US soybean production for the next 12 months.
Coupled with increases in Brazil and other countries, the world's soy harvest area could grow 4% compared to the previous year. In combination with slight yield gains, the ICG holds out the prospect of a 7 % production increase to a new peak of 366 million tonnes.
The US area harvested in the next year is projected at 34 million hectares. The harvest could rise to 114.2 million tonnes as a result. However, with weeks to go until the sowing campaign starts, this early forecast should be taken with a grain of salt.
Meanwhile, in Canada low prices and trade uncertainties over the disagreement with China will likely lead to a slight shrinkage in production area in 2020/21. Nevertheless, assuming average yields, Canadian output could still rise 8 % year-on-year to 6.6 million tonnes.
The IGC estimates that 2020/21 global soybean consumption will surge to a new peak - now of 365 million tonnes - for the ninth year running. Consequently, world soybean output will likely cover demand.
The ICG estimates another bumper crop in Brazil, a standard US crop and production increases in smaller soy-countries will assist the market in 2020/21.
After the almost one-fifth decline in production in the past season, the IGC estimates a rebound in US soybean production for the next 12 months.
Coupled with increases in Brazil and other countries, the world's soy harvest area could grow 4% compared to the previous year. In combination with slight yield gains, the ICG holds out the prospect of a 7 % production increase to a new peak of 366 million tonnes.
The US area harvested in the next year is projected at 34 million hectares. The harvest could rise to 114.2 million tonnes as a result. However, with weeks to go until the sowing campaign starts, this early forecast should be taken with a grain of salt.
Meanwhile, in Canada low prices and trade uncertainties over the disagreement with China will likely lead to a slight shrinkage in production area in 2020/21. Nevertheless, assuming average yields, Canadian output could still rise 8 % year-on-year to 6.6 million tonnes.
The IGC estimates that 2020/21 global soybean consumption will surge to a new peak - now of 365 million tonnes - for the ninth year running. Consequently, world soybean output will likely cover demand.
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