Mustard - Global production estimate of oilseeds cut due to low production of rapeseed
13-Jun-2024 03:33 PM
Chicago. For the year 2024-25 season, it is being told that the characteristic of American soybean is that its opening and closing stock will increase because its crushing in the domestic sector may fall by 10 percent and there will not be much change in prices.
The global production estimate of oilseeds has been cut somewhat because the production of rapeseed is likely to decrease in Australia and the European Union.
Despite the outstanding stock being high in the US, the global outstanding stock of soybean is estimated to be low because production in Brazil and Paraguay has decreased while there are indications of an increase in soybean exports from there.
Due to a decrease of 10 million bushels in soybean crushing during the 2022-24 season in the US, the outstanding stock is estimated to increase at the beginning of the 2024-25 season. Soybean crushing is likely to decrease due to the decrease in domestic use of soymeal.
The average global market price of soybean for the 2024-25 season is expected to remain at $11.20 per bushel. Similarly,
the price of soybean meal (DOC) is expected to be $330 per short ton and the price of soybean oil is expected to be 42 cents per pound, which is the same as the estimate made last month.
The US Department of Agriculture (USDA) in its latest monthly (June) report has projected the total global production of oilseeds during the 2024-25 season to be 685.8 million tonnes,
which is 1.3 million tonnes less than the estimate of the May report. Rapeseed production is expected to decline due to a decrease in the sown area in Australia and the yield rate in France.
The initial and final global planted stocks of soybean are estimated to decline. In Brazil, the soybean production estimate for the 2023-24 season has been reduced by 1 million tonnes to 153 million tonnes,
while the estimate of soybean exports from its neighboring country - Paraguay has been increased. Global outstanding stocks of soybean are estimated to be 127.9 million tonnes, which is 0.6 million tonnes lower than last month's estimate.