Oleochem Analytics – The U.S. season-average soybean price for 2020/21 is forecast at $11.05/bushel, down $0.20 as early-season sales at lower prices continue to weigh on the season-average forecast, according to the July World Agricultural Supply and Demand Estimates (WASDE) report released by the U.S. Department of Agriculture (USDA). The soybean oil price is forecast at 57.5 cents/lb, down 1.5 cents/lb.
Other soybean changes for 2020/21 include lower imports, crush, and exports.
Soybean production is projected at 4.4 billion bushels, unchanged from last month, as well as the supplies and use forecast. With offsetting changes in supply and use, ending stocks were unchanged at 135 million bushels.
The 2021/22 global soybean ending stocks increased 1.9 million tons to 94.5 million as higher stocks for Brazil and Argentina are partly offset by lower Chinese stocks. The stocks revisions reflect notable balance sheet changes for Brazil and Argentina in 2020/21 and China in 2020/21 and 2021/22.
Palm oil production is projected to suffer a 0.3-million ton reduction to 18.2 million for the upcoming Malaysian 2020/21 harvest.