South American Soybean Stocks Down 20 MMT Year-On-Year
Soybean stocks in South America (Brazil, Argentina, Paraguay and Uruguay) stood at 53.1 MMT on July 1st, 20 MMT less than year ago levels, according to Oil World.
Brazilian reserves stood at 27 MMT, from 35 MMT in July 2008, and in Argentina reserves are down to 24.2 MMT from almost 35 MMT in July 2008. The sharp drop is due to lower production due to drought, particularly in Argentina, aggressive exports and increased domestic crush, they say.
“US soy reserves are expected to reach a minimum towards the end of August, which could cause difficulties for future deliveries in the first two to three September weeks, particularly if the crop suffers delays”, adds the forecast.
Whilst I agree, the market doesn't appear to see it that way judged by old crop CBOT soybeans movements in the last few sessions.
Brazilian reserves stood at 27 MMT, from 35 MMT in July 2008, and in Argentina reserves are down to 24.2 MMT from almost 35 MMT in July 2008. The sharp drop is due to lower production due to drought, particularly in Argentina, aggressive exports and increased domestic crush, they say.
“US soy reserves are expected to reach a minimum towards the end of August, which could cause difficulties for future deliveries in the first two to three September weeks, particularly if the crop suffers delays”, adds the forecast.
Whilst I agree, the market doesn't appear to see it that way judged by old crop CBOT soybeans movements in the last few sessions.
