Reduction of prices for soy-bean

It is well known that in the end of October National service of agricultural statistics of the Minsirty of agricultural of the USA has reduced expected production of soy-bean in the country in 2008/09 marketing year for 1,5% to 80 mln. tons, expected export - for 2,9% to 27,8 mln. tons. Expected carry-over stock is revised and reduced for 6,8% to 5,6 mln. tons that complies with the same level in 2007/08 marketing year. As a result, in northern hemisphere level of production will be lower than it was expected before, that is why in the second half of 2008/09 marketing year dependence of global market from offer of South-American soy-bean will increase.

German company Oil World predicts that in 2008/09 marketing year harvest of soy-bean in Brazil will reduce in comparison with previous season for 0,2% to 60 mln. tons. In Paraguay level of production will decrease for 3,1% to 6,6 mln. t. In Argentina it will increase for 5,3% to 49,5 mln. tons.

At the present moment prices for soy-bean are low because price of American products is at the lowest position from autumn of 2007. This reduction of price for soy-bean was caused by global financial crisis and expectation of economical fall. As a result soy-bean processing was decreased in the USA and Argentina in September – October.

Low price for soy-bean promotes increase of demand that will lead to the price growth.

In September of this year processing of soy-bean in Argentina was reduced comparing with the same period of the previous year for 10% to 3,2 mln. tons. At the end of September stock of soy-bean oil was 198 th. tons that is for 40,2% less than the same level in the previous year.


News, 18 May 2009