South American Soybeans Improved ‘Decisively,’ Oil World Says

South American soybean prospects “improved decisively” in February as rainfall boosted crop conditions, and exports from the continent may reach a record, Oil World said in a report.

Output in Brazil, Argentina, Paraguay, Bolivia and Uruguay will total 131.13 million metric tons in the current marketing year, up 2.8 percent from a January estimate, the analyst said. South American exports may reach a record 47.4 million tons in the year through August as Brazilships more, Oil World said. Exports from the U.S. and Canada also may increase, it said.

“In South America, soybean production prospects have improved decisively,” according to the report. “There is a possibility that actual production in Brazil and Argentina even turns out above our forecasts.”

Soybean futures for May delivery rose 7.5 cents, or 0.5 percent, to $13.7225 a bushel on the Chicago Board of Trade at 11:10 a.m. London time. The price has gained 43 percent in the past year.

Global growers may harvest 259.01 million tons, up 1.2 percent from the Jan. 28 forecast, Oil World said. Stockpiles of soybeans will total 66.2 million tons, up 3.1 percent from the January estimate, Oil World said.

World soybean processing is set to increase 7.9 percent compared with a year earlier to 227.2 million tons in the year through September, the analyst said in the report.

World imports will reach a record 95.2 million tons through September, an increase of 7.3 percent, Oil World said. Chinese imports of the oilseed may total 55 million tons, 58 percent of total purchases, according to the report. Rapeseed availability has declined in the European Union, which may boost imports of soybeans, Oil World said.

‘Dramatic Expansion’

“The most dramatic expansion is occurring in China,” according to the report. “EU imports of soybeans are set to recover as crushers are replacing insufficient supplies of rapeseed.”

EU rapeseed imports will total 2.5 million tons through June, up from 2.18 million tons a year ago, Oil World said. Production is forecast at 20.61 million tons, unchanged from a January report and 5.3 percent lower than a year ago, the company said. World output may fall 2.8 percent from a year earlier to 58.77 million tons, according to the report.

(Source: http://www.bloomberg.com/news/2011-03-01/south-american-soybeans-improved-decisively-oil-world-says.html)