The latest cut in estimates of the US 2003 soyabean crop will require even larger than expected exports of South American beans to meet global demand in coming months, Hamburg-based newsletter Oil World said.
Last week's downward revision of the 2003 US soyabean crop by the US Department of Agriculture means the potential for US soyabean exports this season has already been largely exhausted and will allow only minor additional sales, it said.
"A further appreciation of US soyabean prices is thus likely so that demand in coming months will be channelled to South America," it said.
It forecast Brazil's March/August 2004 soyabean exports will rise sharply to 18.16 million tonnes from 14.54 million in the same 2003 period.
Argentina's March/August 2004 exports could rise to 9.67 million tonnes from 8.03 million, it said.
"The key determinant for the price development in coming months will be to what extent South American soyabean supplies can offset the shortage in the US," it said.
Comments
Comments are closed.