Global Soybeans Market Weekly Summary: Key Updates for June 11, 2024
- Brazil (Mato Grosso & Rio Grande do Sul): Soybean acreage in Mato Grosso is set to increase slightly by 0.64% for 2024/25, totaling 12.56 million hectares, while yields are projected to rebound by over 11% to 57.97 bags per hectare. High production costs and lower soybean prices may curb major investment. In Rio Grande do Sul, 94% of the soybean harvest is complete despite weather-related delays and drainage issues, with crop prices increasing to R$123.09 per 60-kg bag. Flooding has caused significant agricultural losses, estimated at R$7.5 billion across soybeans, corn, and rice.
- Paraguay: StoneX projects Paraguay’s soybean output for 2023/24 to exceed 10 million tonnes, supported by strong yields in Alto Paraná despite drought-related declines in Canindeyú and San Pedro. Commercialization is robust, with 74% sold and promising pricing at the Asunción port.
- United States: Soybean processing has dropped by 15.5% month-on-month, influenced by high costs, slower biofuel demand, and global competition, especially from South America. Although planting is nearly complete, refinery shutdowns and reduced biofuel demand impact production, with processing for April at its lowest in the 2023/24 season.
- Argentina: The soybean harvest lags, with only 87% completed due to adverse weather and pests. The 2024/25 forecast remains strong, with production expected to reach 51 million tonnes, driven by increased acreage and favorable conditions for the second crop, bolstering Argentina’s position as a top soy meal and oil exporter.
- Russia & Spain: Russia’s Tambov region is increasing soybean cultivation to meet animal feed demand, while Spain’s Elian Barcelona is expanding soybean processing operations, indicating growth in the soy products market. These efforts highlight global investment in soybean cultivation and processing to meet rising demand in various sectors.
These updates reflect the complexities and opportunities in the global soybean market, shaped by weather, production costs, and evolving industry needs. For deeper insights and data, visit CropGPT for extensive analysis on market trends, weather data, and economic impacts.
